The banks in the UAE play dirty with their customers. They behave as if they are obliging their customers by letting them keep their money in the banks whereas it should be the other way around. Despite of all the research you do before applying for personal loan in the UAE, there is high probability of your personal loan being rejected. Did you go to the best place to get a personal loan? Doesn’t make a huge difference. Well, so how do you avoid personal loan rejection in the UAE? Scroll down:
- Check your credit report
Two non-negotiable criteria whilst applying for personal loan are credit history and credit score. You are likely to face a loan rejection in the UAE if your credit history is poor and credit score is low. Defaulted loan repayments in the past will lead to poor credit history.
Pro Tip: Use your credit card wisely to improve your credit history and build credit score.
- Proper documentation
Documentation plays a substantial role when applying for personal loan. Even a single erroneous document can lead to rejection of personal loan. So, crosscheck all the details in the form and attach appropriate documents.
Pro Tip: Clarify your doubts before submitting the final version of the application form and double-check your contact details.
- Clear up your debt
Trust plays a vital role in advancing loans from bank. An assurance of repayment of loan is substantial and to win the trust of the insurer, ensure that you clear up all your past debts. This leaves an impression and reduces the DTB ratio. DTB ratio plays a crucial role in the loan approval process.
Pro Tip: Settle existing debt before applying for a new one.
- Disclose your intention for the loan
Personal loan can be utilized for n number of purposes. To get a low interest personal loan, disclose your intention on the application form so that the bank can offer you the best rate as per your utilization of the funds.
Pro Tip: Be honest to avoid loan rejection.
- Check employer’s bank
By applying for personal loan with your employer’s bank, there’s a high probability of loan approval as the bank is in good relations with the employer. Also, it offers an extra level of security to the banks.
Pro Tip: Check with your HR manager if you don’t know your employer’s bank.
- Check the minimum requirement
The criteria for granting loan varies from bank to bank. So, before applying for personal loan in any of the banks, do find out all the details and minimum requirement. The documents required will depend on your principal amount.
Pro Tip: Work out your monthly repayments by calculating the interest.
“Where can I get a personal loan” is what you ask? Well, that’s a secondary question. Primarily, focus on ‘How to avoid personal loan rejection’ whenever applying for personal loan in the UAE.