5 Important Questions to Ask Before Taking a Personal Loan

What Is A Personal Loan?

A personal loan is cash you can borrow to use for different purposes. Personal loans are accessible by banks, online lenders, or credit organization. It is compulsory to pay back the money that you borrowed over a certain period, typically with interests. Personal loans can offer an affordable substitute and also help you finance your big purchases.

Types of Personal Loans

• Secured Personal Loans

Secured Personal Loan is a process where you provide debt insurance collateral, such as a car, a bank account, or a certificate of deposit to get a secured personal loan. The positive thing about secured personal loan is that the interest rate on secured personal loans is typically smaller than unsecured loans.

• Fixed-Personal Loans

With Fixed-Personal Loans, the interest rate is the same for the duration of the loan as the monthly payment. But there is a certain advantage, and that is you will know just how much your instalment is going to cost every month; therefore, making it easier for you to plan your payments.

• Debt Consolidation Loans

If you have any other debt, you can use a loan to merge it in one place, making it easier to pay it off. If you can pay less in interest, you will save more money. Another advantage of a debt consolidation loan is the fact that you can use it to pay off credit cards and also improve your credit utilization score.

Important Questions to Ask Before You Apply

• Is A Personal Loan A Smart Idea?

In normal conditions, a personal loan is a smart idea because it is used to boost your financial situation and you can pay it back without pressuring your schedule.

• Do I Have A Credit Score That Is Good Enough?

Before you apply for personal loans, it is important to know your credit score to make sure you are eligible to apply. Most personal loan lenders are looking for applicants with a strong credit score. If you have a clear history of paying bills on time and upholding the terms of your previous loans and accounts, you might be given a preferential offer.

• How Much Can I Borrow?

The minimum and maximum loan limits are fixed by each lender, and the amount of your personal borrowing depends on many factors, including: your annual income, loan terms and interest rate, as well as your monthly debt payments. You can use this loan calculator to know how much you can borrow.

• What Is the Interest Charge on My Personal Loan?

Lenders will sometimes give you an option to make your payments on weekly/monthly instalments, considering the fact that you have a fixed-rate loan arrangement which you must satisfy the periodic repayments.

• How Much Will I Pay When My Personal Loan Sum Up?

When you test your financial ambitions and how you're going to reach them, it's important to know just how much your personal loan would cost you. Some finance services might include a variety of costs, such as establishment fees, billing fees, but there is no set-up payment for a Personal Loan.

ADCB’s Simply Life

SimplyLife is best financing service in the UAE in terms of personal loan packages.

Same-day query response, no extra charges for early payment settlements, a flexible eligibility criterion, and competitive interest rates are some features that facilitate the processing of your personal loan and make your experience seamless.

More Features of ADCB’s SimplyLife:

• Transfer your salary to enjoy loans up to AED 500,000.
• Enjoy repayment tenures up to 48 months.

ADCB’s SimplyLife promises to not let life’s special moment pass you by. Its primary aim to bring you happiness and joy, helping you build a business, make a family visit back home, secure your child’s education, throw your dream wedding, and much more.