The rate of interest offered on Arab Bank Personal loan is based on the borrower’s income and the loan amount, etc. Arab Bank personal loan interest rate for the current year is:
|Rate of interest offered||5.49%|
|Maximum loan amount||AED 550,000|
|Documents required while applying for the loan||
National ID and Passport with valid resident visa
Recent utility bill
Latest salary slip
Salary transfer letter
6 months’ bank statement
Overview of Arab Bank personal loan
Arab Bank offers personal loan to meet all your personal financial requirement. The process is easy and flexible. The loans are provided at a competitive interest rate. You can enjoy the convenient repayment tenure of up to 4 years. Arab Bank provides personal loan up to AED 550,000. You can also avail the loan pay-out facility and enjoy the grace period of up to 45 days.
How to calculate EMI on your Arab Bank Personal Loan
To calculate how much EMI you have to pay each month, you need not compute it using formulas. Instead, you can make use of the loan EMI calculator that is available to you on the Arab Bank website. All you need to do is to choose the type of loan, enter the nominal interest rate along with the loan amount and the loan tenure detail. You will get the total EMI amount result that is payable by you. It saves you time and it is quick and easy to use.
Along with the loan EMI detail you also get a graphical representation of the total breakup of the amount payable.
For example, Mr. Ronny has taken a personal loan for AED 100,000 from Arab Bank. The interest rate he is being offered is 5.49 percent for a tenure of 6 months. His EMI is AED 16,934.56. His remaining balance each month will be as follows:
- 1st month: AED83,522.94
- 2nd month: AED66,970.50
- 3rd month: AED50,342.34
- 4th month: AED33,638.10
- 5th month: AED16,857.43
- 6th month: AED 0
Factors affecting Arab Bank personal loan interest rates
The factors that affect Arab Bank personal loan interest rates are:
- Credit history: Applicant’s credit history is checked before granting the loan. If the applicant has a good credit history, he can avail interest at a lower rate. A bad credit history might result in rejection of the loan.
- Employment history: If you have worked in the current company, you stand a higher chance of getting a lower rate of interest on your personal loan.
- Loan tenure: If the loan tenure is short, the interest rate is high when compared to loans with a longer tenure.
- Repayment capacity:
Arab Bank checks a person’s repayment capacity before offering him a loan and before deciding the interest rate. The bank will make sure that after paying the EMI, you will have enough money left for the rest of the month. The bank also looks into the borrower’s assets and his creditworthiness.
Key things to know about Arab Bank personal loan interest rates
Arab Bank offers:
- Competitive interest rates are offered.
- If you have a good credit history, you stand a better chance of getting a lower rate of interest.
- You can avail flexible repayment option and also get a grace period of 45 days to make the payments.