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Thursday, July 25, 2024

Learn Why Expatriates Opt for Personal Loans

This article delves into the compelling reasons why expatriates choose this financial tool to address their diverse needs. The allure of lower interest rates, coupled with the ease of availability, makes personal loans an attractive solution for the expatriate community. As living costs continue to escalate, these loans become essential in bridging financial gaps, facilitating everything from education to family milestones. 

With features like easy repayment mechanisms and the potential for debt consolidation, personal loans emerge as a strategic financial resource for expatriates navigating the vibrant yet demanding landscape of the UAE.

Easily Available at Lower Interest Rates

One of the many reasons personal loans are important for expatriates are for their lower interest rates and ease of availability. The interest rates offered on personal loans in the UAE are relatively lower than those in other countries. Here’s an example of the same –

Of the estimated expatriate population of 8 millions, about 2.8 million are non-residents Indians (NRIs). Most of these NRIs prefer to apply for a personal loan in the UAE for its lower interest rate than India. Here’s a thing, the interest rate for a personal loan in India is around 16 to 18% while in the UAE, the personal loan interest rates vary between 5 to 22% approximately. 

Helps Aid Higher Costs of Living

Living costs in the UAE have been inflating for the past few years. The constant increase in the living costs has made many expats opt for personal loans to bridge the financial gaps. With a personal loan for expats can facilitate higher education for their children, get home renovated, or even use it for getting a family member married. 

Ease of Repayment

Most of the time the monthly instalments are linked to the bank account via auto-debit feature. This makes it easy for the expatriates to repay the loan on time. 

Debt Consolidation

Numerous expatriates in the UAE opt for personal loans to settle escalating credit card or other liabilities. Banks actively suggest loans when customers seek a convenient means to clear their card balances. The benefit lies in the potential for debt consolidation, enabling repayment of the loan through manageable monthly instalments, avoiding the steep penalties associated with credit card payments.

To Conclude

In conclusion, personal loans play a pivotal role for expatriates in the UAE due to their accessibility at lower interest rates. With living costs on the rise, these loans become instrumental in managing higher expenses, from education to home renovations. The ease of repayment, coupled with the option for debt consolidation, enhances the financial flexibility for expatriates, making personal loans a pragmatic solution in channelising the challenges of an evolving financial scenario.

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