How Personal Loan is The Best Option for Emergency Funds Needs
The unpredictability of life makes us all constantly vulnerable. An emergency can strike us at any moment and therefore it is best to be prepared at all times. We all try to save up for contingencies arising in the future but sometimes that are not enough. Whether one needs access to instant funds for a medical emergency, some unexpected home renovations, or in order to cover for last-minute expenses, a persona loan could offer a relevant solution to all your needs in UAE.
Getting a personal loan for emergency is categorized as one of the safest bests after borrowing from family and friends when one is in dire need of some cash. Unlike a credit card loan or any other type of emergency source of funding, a personal loan for emergency is ideal as it comes at fairly low rates on interest, especially if you are someone who has maintained an excellent credit history. Thus, as opposed to a payday loan they are far more economical and also are easier to pay off. There are several other perks of taking a personal loan at low interest rate, like getting the funds instantly without an extensive wait period, thus making them a perfect choice for times when you need money quickly. Personal loans offered by banks and other financial institutions in the United Arab Emirates are convenient and fast in terms of the application process as well as approval.
Let us try to dig deeper into how we can opt for a personal loan for emergency, but first:
What is a personal loan?
A personal loan is a type of loan where an individual borrows money for any personal reason be it for debt consolidation, a vacation, an unexpected medical bill, or even for one’s higher education. The money borrowed has to be paid back along with an interest that is charged monthly over the loan’s tenure. Most of the personal loans are unsecured, which means they are not backed by any collateral.
Why personal loan for emergency?
There are many reasons that make personal loans your best bet for quick funds during an emergency. Given below are some of the top advantages of getting a personal loan in UAE when you want the lender to offer you same-day or next-day funding, getting you the amount you need, when you need it:
1. They are versatile and flexible
Personal loans can be used for many different purposes, unlike other loans. For instance, a car loan can only be used to purchase a vehicle. A personal loan however can be used for a variety of purposes approved by your lender.
2. Quick disbursal:
When you have an emergency, you need the money quickly and thus personal loans are a favorable option since most banks disburse the personal loan within 24 hours of approval.
3. No need for collateral:
These unsecured loans are collateral- free, which means one does not have to mortgage an asset in order to avail of the funds.
4. Attractive interest rates
An individual can take personal loan at low interest rate, making sure that their EMIs are affordable and their finances stick to their budget.
5. High borrowing limit
Most individuals will be able to qualify for a higher loan amount as opposed to a credit card loan.
6. Enhanced eligibility
A personal loan for emergency is ideal as it comes with minimum eligibility requirements. An applicant in the UAE has to be at least 21 years of age to avail of a personal loan in the country.
Tips for comparing when getting a personal loan for emergency
The UAE has something to offer to everyone when it comes to getting a personal loan. These loans are extremely lucrative and flexible, which makes it all the more difficult to pick one among the sea of options available. So, here are some tips to help you compare personal loans during an emergency:
1. If possible, pre-qualify
Prospective borrowers can pre-qualify for a loan by submitting information regarding their income, financial needs, and other relevant information to ascertain the loan amount, rates, and repayment schedule they qualify for. If one ever needs instant funds, being pre-qualified for a personal loan for emergency can help save time.
2. Consider the additional charges
Some lenders offer loans without additional fees like a late payment fee, prepayment penalty among others. Comparing these additional costs can help you narrow down the bank you can take personal loan at low interest rate.
3. Lender-approved reasons for personal loans
While personal loans are flexible and can be used for many purposes, some lenders restrict the use of a personal loan. Therefore, it is important while considering a lender to confirm whether its intended use is permissible under the contract, especially if you need the money quickly.
4. The customer support
If you have already narrowed it down to a lender who is offering the amount required at acceptable terms and conditions, there is one more thing you should consider. Even though most people overlook the need for an efficient customer support system, it is extremely vital if one ever encounters any financial issues during the repayment tenure. Check out your lender’s customer service reviews from the current as well as past borrowers to ensure a smooth ride later on.
Top UAE banks offering personal loan for emergency:
To help you save your precious time in the event of an emergency, we have listed out some of the best banks offering personal loans in the UAE-
1. ADIB Bank
2. FAB Bank
3. Emirates NBD
5. ADCB Bank
The Bottom Line
We never know when we might need access to some extra funds due to an unforeseen event. However, getting a personal loan for emergency might help us salvage the situation to a great degree. The UAE loan market is full of great alternatives, offering a loan at affordable rates of interest to not overburden you at an already difficult time. Take personal loan at low interest rate to meet your emergency fund needs in 2021 and get an instant solution to your worries.