Borrow without changing salary accounts: What are you missing out on?

Borrow without changing salary accounts: What are you missing out on?

Dubai: When seeking finance to either buy a home, or for when your children plan to study abroad, or for a wedding in the family, this involves a lot of research that goes into choosing banks, interest rates, term etc., before you borrow funds. But often times it’s much more than just those criteria.

“When it comes to loan eligibility criteria in the UAE, the most common eligibility is to transfer your monthly salary, a move to reduce risk for the lender in terms of any assurance of the loan being repaid back,” said Parthiv Patnaik, a Dubai-based banker with nearly four decades in the industry.

“However, considering the growing demands of customers, several banks and financial institutions have been offering personal loans in the UAE without a salary transfer for both expats and UAE nationals. So it’s always crucial to know what this entails for borrowers.”

While there is a slight difference in the rate of interest or amount to be borrowed based on the norms of each bank, non-salary transfer personal loans are still a popular source of borrowing in the UAE. But if you don’t opt for them, are you truly missing out on cost-related perks?

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