As mentioned before this loan does not have interest rates and is charesticarally based on reduced interest rates which means with every loan repayment the interest rates reduce at the same time. Let us take a look at the interest rates. The interest rate has a range and is based on the customer profile pertaining to a customer’s financial variables.
|Type of Loan||Interest Rates||Maximum Loan Amount|
|RAKLoan||Starts from 5.99% p.a.||20 times the salary for employed applicants and 15 times the salary for Armed Forces Staff|
Overview of RAKBANK Personal Loan
RAKBANK is a comprehensive loan option for people living in UAE. It offers great benefits including free insurance as well a low minimum income requirement to apply for the loan. However, the maximum loan amount that can be taken is moderately high allowing people with lower income to seek eligibility and apply for the RAKBANK personal loan. It also has competitive interest rates which makes it a convenient financial product for people in the country. This loan however requires the borrower to transfer their salary for application.
How to calculate EMI on your RAKBANK Personal Loan
Aspiring loan candidates can calculate their EMI using the EMI calculator available on the bank website. The personal loans offered by RAKBANK start from 5.99% p.a. The calculator available on the website allows for applicants to add the different variables such as loan amount availed, tenure chosen and the tool will provide the estimate EMI.
Factors affecting RAKBANK personal loan interest rates
The factors that decide your RAKBANK personal loan interest rates include:
- Loan tenure: The loan repayment is critical for determining the personal loan interest rate. If the applicants choose long tenure for loan repayment, the rate of interest automatically reduces by the reducing calculation with every successful EMI paid.
- Employment history: Stability in terms of finance is very important for the bank to note as it helps decide whether the individual can actually afford paying the EMIs regularly. Also individuals working in reputable companies have a higher chance of loan approval
- Monthly Income: The minimum income per month is only AED 5000, however, higher your income the lower your rates might be considering that you have better of chances of affordability of the loan. However, chances of loan approval are higher with higher income.
- Credit Score: One of the most important things in not only interest rate but also loan application approval is the credit score. The interest rates get lower and the chances of loan approval are also much higher.
Key Things to know about RAKBANK personal loan interest rates
There are a few things you might want to keep in mind about RAKBANK personal loans and their interest rates:
- The processing fee is 1% of loan amount. The range for minimum and maximum processing fee chargeable is AED 500 and AED 2,500 respectively.
- The life insurance comes free with this product.
- The early settlement fee is calculated @ 1% of outstanding amount
- Salary transfer is required for availing the personal loan from RAKBANK.