Start your banking journey with the leading bank in the region.
Find a suitable account and applyDiscover the benefits of being our customer by browsing through our banking packages.
Learn more about banking packagesLearn all about how to use your account's features and benefits to the fullest.
Visit our dedicated support center for answers to all your banking-related questions.
All our cards offer you an exciting range of rewards and benefits.
Find a suitable card and applyGet the most out of your credit card by exploring its different benefits.
Learn all about how to use your card's features and benefits to the fullest.
Visit our dedicated support center for answers to all your banking-related questions.
Here's how to make the most out of your loan with us.
Visit our dedicated support center for answers to all your banking-related questions.
Our various FX products and services help you conduct your international transactions easily.
Our wide range of transfer options make it easier for you to send money locally and internationally.
Learn all about how you can seamless use our services to transfer money.
Our wealth solutions help you manage your financial future better and achieve your financial goals.
Know more about our Wealth servicesLife is uncertain but you can be prepared to face adversity with our wide range of insurance plans.
Access to over 11,000 stocks and ETFs in Global and UAE markets
Visit our dedicated support center for answers to all your banking-related questions.
Everyday banking is a lot easier with our digital banking platforms and services.
Discover more about banking with usWe have over 200 branches and 900 ATMs and CDMs across the UAE and overseas.
Learn more about our services and get the most out of your banking relationship with us.
Visit our dedicated support center for answers to all your banking-related questions.
Introducing Signature, a programme of distinction reserved for the upper crust of Emirates NBD
Our wealth solutions help you manage your financial future better and achieve your financial goals.
Life is uncertain but you can be prepared to face adversity with our wide range of insurance plans.
Everyday banking is a lot easier with our digital banking platforms and services.
Learn more about our services and get the most out of your banking relationship with us.
We welcome you to a bespoke banking experience tailored to suit your private banking & wealth management needs, should you, your family, or your business have USD 5 Million (or currency equivalent) and above as Assets Under Management with us.
Start your banking journey with the leading bank in the region.
Find a suitable account and applyDiscover the benefits of being our customer by browsing through our banking packages.
Learn more about banking packagesLearn all about how to use your account's features and benefits to the fullest.
Visit our dedicated support center for answers to all your banking-related questions.
All our cards offer you an exciting range of rewards and benefits.
Find a suitable card and applyGet the most out of your credit card by exploring its different benefits.
Learn all about how to use your card's features and benefits to the fullest.
Visit our dedicated support center for answers to all your banking-related questions.
Here's how to make the most out of your loan with us.
Visit our dedicated support center for answers to all your banking-related questions.
Our various FX products and services help you conduct your international transactions easily.
Our wide range of transfer options make it easier for you to send money locally and internationally.
Learn all about how you can seamless use our services to transfer money.
Our wealth solutions help you manage your financial future better and achieve your financial goals.
Know more about our Wealth servicesLife is uncertain but you can be prepared to face adversity with our wide range of insurance plans.
Access to over 11,000 stocks and ETFs in Global and UAE markets
Visit our dedicated support center for answers to all your banking-related questions.
Everyday banking is a lot easier with our digital banking platforms and services.
Discover more about banking with usWe have over 200 branches and 900 ATMs and CDMs across the UAE and overseas.
Learn more about our services and get the most out of your banking relationship with us.
Visit our dedicated support center for answers to all your banking-related questions.
Start your Priority Banking journey and live your success
Introducing Signature, a programme of distinction reserved for the upper crust of Emirates NBD
Our wealth solutions help you manage your financial future better and achieve your financial goals.
Life is uncertain but you can be prepared to face adversity with our wide range of insurance plans.
Everyday banking is a lot easier with our digital banking platforms and services.
Learn more about our services and get the most out of your banking relationship with us.
We welcome you to a bespoke banking experience tailored to suit your private banking & wealth management needs, should you, your family, or your business have USD 5 Million (or currency equivalent) and above as Assets Under Management with us.
Be a responsible borrower – know everything you need to know before you take a loan
At Emirates NBD we take our responsibility to you, our client, very seriously. Through this article, we aim to inform you about how to borrow money safely so you can benefit from the power of our loans while avoiding unmanageable debt.
Responsible lending and borrowing are good for our clients and for the industry. As a responsible lender, we will never over-stretch you. We will only offer you loans that fit your budget, so you can pay back comfortably. Don’t be tempted by more money from lenders if you can’t afford it, that will only lead to a debt burden that will quickly spiral out of control.
Ask yourself the following questions before you take a loan:
Once you answer all the questions above, you need to understand the common concepts and terminology associated with loans. Here, we present the most important ones – read and understand so you can borrow wisely.
Equated monthly installments
An equated monthly installment (EMI) is a fixed payment you will make to the bank on a specified date every month. Your EMIs will include both interest and principal so the loan will be fully paid off over a specified number of years.
Debt burden ratio
Your debt burden ratio (DBR) measures your ability to manage monthly payment and repay debts. DBR is calculated by dividing total recurring monthly debt by gross monthly income and it is expressed as a percentage. The total recurring debts will include all EMIs and 5% of the total credit limit of all credit cards held. DBR is capped at 50% by the Central Bank of the UAE.
Learn more about your debt burden ratio and your credit score.
Credit reports
A credit report helps lenders assess your credit-worthiness or your ability to pay back a loan. It can affect the interest rate and other terms of a loan. The report includes a record of current and previous credit, payment history over the last 24 months, payments overdue and records of any defaults.
The Al Etihad Credit Bureau (AECB) in the UAE collects and maintains individual credit information from banks and financial organisations. Any lender can request the AECB for your credit report when you apply for a loan. It’s a good idea for you to request a credit report for your own records or before you apply for a loan. There is a small charge for this. Learn more here.
Risk-based pricing
Risk-based pricing is a form of price discrimination based on expected risks for different borrowers. The interest rate offered to you is based on your previous banking history. If you have a good banking history, you’ll be offered a preferential rate as compared to customers who may have defaulted on repayments.
Flat rate vs. reducing rate
A flat interest rate is calculated on the full loan amount for the whole term without taking into consideration that payments over time reduce the amount borrowed. In other words, interest is charged on the full amount of the loan throughout the loan tenure.
A reducing interest rate, on the other hand, is calculated every month on the outstanding loan balance. EMI payment every month contains interest payable for the outstanding loan amount plus principal repayment. On every EMI payment, outstanding loan amount reduces by the amount of principal repayment. So interest for the next month is calculated only on the outstanding loan amount.
Converting a flat rate to a reducing rate
Some banks use flat rates when promoting loans as they appear much cheaper, but in reality this may be more expensive than a reducing rate. To convert a flat interest rate to a reducing interest rate, multiply it by 1.8 and in case you wish to go from reducing to flat, then divide the given rate by 1.8%. For example a flat rate of 3.99% is more expensive than a reducing rate of 6.99% (3.99 X 1.8 = 7.18%).
Deferment
A deferment allows you to postpone your EMI payments by one month. A fee of AED 100 applies. You can defer 2 loan installments in one loan year.
Credit Life Insurance
When you take out a loan, you also purchase credit life insurance that protects both you and the bank. This is generally a one-time amount that is paid on the entire loan amount.
Early settlement fee
An early settlement fee is charged by the bank if you pay off a loan or mortgage before the scheduled term of the credit facility. This is usually 1% of the loan outstanding at the time of loan repayment but can vary based on the type of loan.
Overdraft
An overdraft is a loan arrangement under which a bank extends credit up to a maximum amount (called overdraft limit) against which a current account customer can write cheques or make withdrawals. The credit limit is the amount you can withdraw once the current account balance reaches zero. Interest is charged only on the daily overdraft (debit) balance in the account.
Loan against fixed deposit
A loan against your fixed deposit for NRIs at the bank usually has the advantage of a lower interest rate than that on a conventional personal loan since it’s secured by the underlying deposit. You can get up to 90% of the value of your fixed deposit and the loan can be taken for any term as long as it does not exceed the deposit's tenure.
Overdraft against fixed deposit
An overdraft against a fixed deposit is a quick and efficient way to meet short-term commitments. Interest will be charged on the amount and the period for which you use the overdraft.
Amortization schedule
An amortization schedule is a schedule of payments showing the amount of principal and the amount of interest that comprises each EMI until the loan will be paid off at the end of its term. An amortization schedule will also include additional information such as the amount of interest and principal paid as well as the remaining principal balance
Short-term cash loans
Short term cash loans cater to small and mid-size expenditures which can be converted to 12 EMIs so as to ease the burden of one-time payment. Expenses such as school fees, house rent and travel expenses can be paid with a short-term cash loan. This loan is offered at lower interest rates and may be repaid in up to 12 installments. It’s more beneficial than borrowing cash on credit cards.
Topping-up your personal loan
If you need more cash, you can top up your Emirates NBD personal loan at any time.
Do your research. Talk to your associates and friends about their experiences with banks. A reputable bank will ensure that you have peace of mind and a pleasant banking experience.
Here are some things to consider:
Low EMIs could lead to longer payment periods. In the long run, this could prove more expensive as you will be paying more interest. Talk to your loan consultant and work out a payment period that suits you best. Don’t stretch the loan for longer than you really need to if you want to save on interest payments and become debt-free earlier.
Be careful not to take hasty decisions as changing anything once you’ve signed up for your loan will always have associated fees. Ask all the questions you need to, there is no hurry!
If you’ve changed your plans or you’re not happy with your Emirates NBD personal loan, you have the option to return the loan within 7 days without any charges. Read more here.
Come to us for any help you need with a loan and we’ll be happy to have one of our loan experts answer your questions and take you through the process.
Questions about our loans? Learn more here.
Most banks will prescribe a limit on your personal loan based on your income and ability to repay. However, it’s always advisable to borrow an amount that you will be able to safely repay without getting into debt you can’t manage.
Yes, you can still get a personal loan even if your salary is not transferred to Emirates NBD – learn more here.
As a UAE National, you can turn your rental income or earned sponsorship fee into a loan opportunity and get additional financing for any anticipated or unexpected expense with our additional income or co-applicant schemes. Our salary transfer loans for UAE nationals may be of interest to you as well.
It's safe only if it’s from a reputable bank. Make sure you have understood the terms and conditions correctly. Don’t be pressurized to take hurried decisions – ask for all the information you need to make a sound decision.
A low EMI could actually lead to a longer payment period and could prove more expensive as you will pay more interest. Moreover, fast processing may force you to take a hasty decision without complete information, so be careful and ask all the questions you need to before you sign up.
Emirates NBD personal loans are all automatically insured at a nominal cost to the borrower. In the case of an untimely death, the insurance company covers the entire loan amount saving the family from any burden.
The maximum tenure for an Emirates NBD personal loan is 48 months. UAE Nationals in the Ministry of Defense can extend their loan tenure up to 60 months.
The mode of payment is arranged at the time you apply for the loan and we do not change it.
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