{"id":2364,"date":"2018-02-05T07:52:17","date_gmt":"2018-02-05T07:52:17","guid":{"rendered":"http:\/\/139.59.38.172:8081\/?p=2364"},"modified":"2023-12-13T13:18:17","modified_gmt":"2023-12-13T13:18:17","slug":"private-lenders-in-uae","status":"publish","type":"post","link":"https:\/\/www.mymoneysouq.com\/financial-blog\/private-lenders-in-uae\/","title":{"rendered":"Private Lenders in UAE"},"content":{"rendered":"\n

Getting a personal loan from a bank can be very easy but only if you have all the required documents and you meet the eligibility criteria with a decent credit score. If you lack in any of these your application can have higher chances of getting rejected.<\/p>\n\n\n\n

Most of the applicants will be in need of money so when a bank rejects a personal loan they approach a private lender. It is not that every rejected applicant goes to a private lender for a personal loan in UAE<\/a> but maximum rejected applicants will be in urgent requirement of money.<\/p>\n\n\n\n

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Maybe interested:<\/strong> Calculate your Personal Loan EMI using EMI Calculator<\/a><\/p>\n\n\n\n

Eligibility<\/span><\/h2>\n\n\n\n

A private lender lends money at any time without any eligibility criteria i.e the restrictions of the minimum salary, nationality, age limit and much more. As there is no documentation work, the finance is approved within no time. A private lender doesn\u2019t consider the minimum salary.<\/span><\/p>\n\n\n\n

Interest rates <\/span><\/h2>\n\n\n\n

Taking advantage of the borrower’s urgency the private lenders charge high-interest rates on shorter tenures. The interest rates keep increasing if any payments are delayed. Due to this the repayment amount will be huge. <\/span><\/p>\n\n\n\n

For example<\/strong>– If you take AED 2000 of loan for 3 months tenure you will be paying AED 2600 including the interest rate of 10% per month which is not affordable for everyone. <\/span><\/p>\n\n\n\n

Legality <\/span><\/h2>\n\n\n\n

In UAE private lending is an illegal work. The lenders and the borrowers are equally punishable for such offense because the officials say as long as there are borrowers there are lenders. There were many cases where the borrowers got arrested for taking illegal loans. The officials suggest that if there are no borrowers there would be no lenders. <\/span><\/p>\n\n\n\n

Private lenders may take passport, post-dated cheques from the borrowers at the time of approval and don\u2019t return the passport until the repayment. They deposit the cheques in the bank and if the cheque bounces it can be a legal issue to the borrower. They tend to threaten the borrowers if the payments are delayed which is totally illegal. Few money lenders seize the property documents as collateral. <\/span><\/p>\n\n\n\n

There are few companies which are government registered and approved for providing private loans. Such companies abide some rules in the lending process like not seizing the passport and other documents. But they have some eligibility criteria.  <\/span><\/p>\n\n\n\n

Finance companies in UAE<\/span><\/h2>\n\n\n\n