Most people would opt for a credit card since it is probably the easiest thing to get but don’t forget it is also the easiest thing to misuse. Over usage of a credit card could make your financial situation worse. Well, taking out a personal loan in Dubai, UAE from a reliable & trustworthy lender is just as easy as applying for a credit card. And you will be able to tackle your current financial situation instead of creating a worse one with the use of personal loan in UAE. Thus, it absolutely makes sense to opt for a personal loan to get financial assistance.
In this article, we have mentioned some of the best ways to use a personal loan in the UAE so that you can make the most of it.
- To Consolidate All Your Debts
One of the major benefits of taking out a personal loan in Dubai, UAE is that it can help you to clear off your debts at one go. And then, you can just focus on paying off the amount of a personal loan you have borrowed. Many of us struggle with debt in the form of multiple credit cards bills, debt with friends & family, outstanding utility bills, and much more.
It can be very difficult dealing or keeping up with so many different types of debt, but with the use of a personal loan, you can clear off all of your debts and divert your attention towards paying your loan amount. Another benefit of personal loan in UAE, you can choose a repayment plan as per your convenience. Meaning that, it enables you to choose your personal loan tenure. In this manner, you won’t have to take tension about people calling you in the day or night or beating down your door for clearing off the debt. You can repay the loan amount in EMIs (equated monthly installments) with the utmost ease.
- To Improve Your Credit Score
You can get into debt in order to improve your credit utilization by using a personal loan instead of a credit card. Lenders determine your credit utilization or the relationship between your credit limit & spending in a given month. If you spend too much in a month, banks may consider you higher risk.
So, try to make a habit of taking out a personal loan for making large purchases rather than utilizing a credit card for that. If you will replace credit card debt with a personal loan then you may improve your credit score. You know, why? Opting for a personal loan & paying it off on time will definitely boost your credit score. Doing this will eventually increase your creditworthiness as well as you can borrow a big loan amount in the future.
- To Save Money With Low Interest Rate
You can take a personal loan in Dubai, UAE to save money. Yes, you read it right. If you currently have a credit card or you have taken a loan on a high interest rate and you’re having trouble in making the payment then you should opt for a ‘personal loan’ to tackle this situation. A personal loan is basically known for the competitive & attractive interest rate. So, search for a personal loan in Dubai with a low interest rate. If the rate of interest is lower than your current interest rate then opt for a personal loan to clear all off your outstanding dues. With this, you will be saving the money which you can use to pay off the loan amount you have borrowed at a low interest rate.
- To Cover Medical Expenses
Even after having health insurance, sometimes the expensive costs of healthcare treatments deter people from availing the best care. Because many medical expenses go beyond what your health insurance covers. So if you have got an unexpected medical emergency and you’re unable to bear the cost of expensive medical bills, a ‘personal loan’ can be your great companion than a credit card.
Often, you can qualify for a personal loan with a higher loan amount at a low interest rate than a credit card through which you can easily bear your expensive medical expenses. Later, you can repay the loan amount through fixed monthly installments.
- To Start Your Own Business/Startup
Without any doubt, staring your own business can be very expensive with the essential need for office space, permit, a website, inventory, equipment, and much more things. In the beginning, it becomes very difficult for many entrepreneurs to bear all such costs. In such circumstances, a personal loan can help to fund a startup or a new business. You can easily avail a personal loan for starting your own business which is equity & collateral free.
- To Finance Home Renovation
Investment in a home improvement using a home loan is a very common thing. But investing in home improvement through the use of personal loan is way better than opting for a home loan. A personal loan is indeed the best way to finance the home renovation. You know, why? With the help of a personal loan, there will be no need to put your home as collateral since the personal loan is an unsecured loan that does not require any guarantor or collateral. Another great thing about taking a personal loan is that the tenor for making a repayment of a loan amount will be less. Therefore, you don’t have to take the stress of loan for a very long period of time.
Final Words
Here you have some of the best ways to use a personal loan in the UAE. Remember, it is always a great idea to stay fully informed about what a personal loan can do for you as you may need for it anytime. Since a personal loan is one of the best ways to fulfill your various personal needs such as home renovating, planning a wedding, consolidate your debts, cover your medical expenses, and much more. Go through all of these points so that you can make the most of a personal loan in times of emergencies.
