The best approach to get the best deal is to compare the annual percentage rate, the interest rate, and the duration rate instead of just comparing the monthly payment. You should look for the lowest instalments but to achieve that don’t increase the loan tenure unreasonably high else you might end up paying a huge amount as the interest on the principal amount. After determining the tenure, rate and monthly instalments look for the fees and other hidden charges that you will have to pay during the loan tenure. Make sure you have read the documents carefully as sometimes they may apply some hidden charges that you might end up paying for no reason. Look throughout the entire contract carefully and agree to the terms if you are fully satisfied with them. These charges might seem insignificant but it makes a huge difference in the total payable sum so make sure there are no hidden charges in the contract.

There can be many types of additional charges while taking a personal loan in the UAE. A late payment fee is charged when you are late in submitting an EMI. The amount is generally pre-decided for a late fee. Next, there is a processing fee which is the cost of administration-related tasks. The cost of this is very low, generally around 1% of the amount. Then comes the early settlement fee that you are liable to pay if you pay the loan before the allotted time. This might sound wrong as you are paying back the loan earlier still have to pay a penalty but the reason for this is that the lender covers the interest lost on the duration of the remaining time. Then comes the disbursement fee which is paid to the lender so he/she considers you a borrower. The next one is the credit insurance fee which you can claim if you fail on paying the loan in the allotted time frame. If you wish to cancel the loan after it is approved then you might have to pay a charge. It depends entirely on the lender. These are some of the common charges that are charged while applying for a personal loan in the UAE.