- Pay your Home Loan
- Go on a shopping spree
- Be a prey to Shylock
Why is it a bad idea to pay your Home Loan in UAE with Personal Loan money?It’s simple, you’ll be paying off a cheaper loan with a much more expensive loan.Case in point: It would hardly benefit you to pay a Home Loan @4.5% with a Personal Loan @10%. Which basically translates into saying that when you deposit AED 10 from one account in UAE to another,your credit balance balance becomes AED 4.5. And you can add to this the Processing Fee.
Gone in 60 seconds! Finally have enough money to splurge on all the Sales or New Collection? Refrain from such expenses before you know the money will be gone and you’ll have nothing substantial to remember of it except a few clothes or accessories. Plan carefully the end use for your Loan instead of spending it on regular shopping.
Never borrow to lend. Do not let any dear friend convince you to take a Loan on his behalf which he will of course repay every month on time. The most likable people can be bad financial managers so it’s best not to get involved in financial matters of other people. Although the modern day Bank is not a Shylock one should avoid playing Antonio, anyway. After all bouncing a cheque is a criminal offense and can even land one behind bars or restrict travel outside the country.
Plan carefully what you would like to do with a Personal Loan so that you pay it back with contentment. There are many good reasons for which a Personal Loan can be used.
Pay off a Credit Card. The interest rate on a credit card is ususally 36% p.a. and it makes good sense to take a Personal Loan at even 10% p.a. to pay off the outstanding balance on a credit card.
Use the funds to start a new business. Seed capital is not always available for a start up and a personal loan plugs in the cash shortage in such a situation.
Invest the funds in a different country to earn a higher rate of return. Such as taking a personal loan @ 6% in UAE and investing it aborad in an investment plan that pays 11% p.a.
Use Personal Loans available in UAE to fund a mortgage at a higher rate in another country.
Use the funds for a special 'once in a life time' event such as your own wedding.
Pay for medical expenses or for a child's or self education. Banks offer Personal Loans at low rates to pay for medical expenses and education.
Rent Payment. Some times rent has to be paid in one or two cheques even though Salary comes in monthly. Once can take a Personal Loans for rent to meet the cash flow deficit. There are personal Loans available at lower than usual rates specifically to pay rent.
When in need for a Personal Loan, write to us
for expert advise for a Loan at best posible rates.