There are no interest rates when it comes to Islamic Finance. The main feature of Islamic finance products is that it works on profit rates rather than rate of interest and the same applies for Dubai Islamic personal finance. The bank doesn’t promise a certain amount of profit unlike in conventional loans wherein the interest rate is fixed to an extent.
Overview of Dubai Islamic bank personal loan
Dubai Islamic bank offers personal finance that can be used for personal expenditures. The bank offers 4 kinds of personal finance, each with its own set of unique features. This finance option helps the customer meet their financial needs in a Sharia compliant manner. The finance options work on profit rates unlike regular loans which work on interest rates.
How to calculate EMI on your Dubai Islamic bank Personal Loan
Calculating EMI on your Dubai Islamic personal finance is not as hard as it might seem. Most of the bank websites and third party financial websites have a financial tool called EMI calculator which calculates the EMI payable for a particular loan depending on the loan amount, tenure and the rate of interest or profit in this case. The customer has to enter few details such as the rate of profit, finance amount, tenure period and processing fee(if any) in order to find out the EMI payable of the personal finance. Once the details are entered, the calculator outputs results that contain the EMI payable along with breakdown of the total amount payable.
Factors affecting Dubai Islamic bank personal loan interest rates
Listed below are some of the key factors that affect Dubai Islamic Bank personal loan profit rates.
- Credit history- If the applicant has a good credit history, they have a higher chance of availing a better rate of profit.
- Income- ‘Higher the income, better the rate of profit’ is the motto followed by most banks when it comes to granting personal finance.
- Tenure- There is a chance of getting a better rate of profit if the tenure is longer.