What to consider before taking out a loan

But before you apply, take some time to consider if it's the right choice.

Personal loans are used for a wide range of reasons, but you may be able to get a more tailored loan if you look around. Education loans, rent loans and home improvement loans may be suited to your needs.

A credit card may be better if you're looking to borrow a smaller amount of money for a shorter amount of time. You may also be able to benefit from an interest-free period, depending on the credit card you choose.

Explore: Quick guide to personal loans

When applying for a loan, you'll need to check what the loan repayments will be to make sure you can afford them. The amount you want to borrow, the length of your loan agreement and the interest rate will all influence how much you'll need to repay each month.

You can use our personal loan repayment calculator to see what your loan repayments would be.

Always check the length of your loan term as this will influence how much your monthly repayments are. The longer the loan term, the less your monthly repayments will be. But, you'll end up paying more in interest over the course of the loan.

You can generally take out a loan for between 6 and 48 months.

There'll be minimum requirements you'll need to fulfil to be eligible for a loan.

Before making an application, check you meet the eligibility criteria.

There may be different requirements you'll need to fulfil if you're an expat looking to take out a loan in the UAE. It can be useful to look into these before applying for a loan.

Your DBR is essentially your debts versus your income. It's a gauge of whether you can afford to make new repayments alongside any existing debts you have. Banks will check this when reviewing your application.

The maximum DBR you can have when working is 50%. That means your monthly repayments must not exceed half of your monthly salary.

Some lenders may charge a fee for repaying the loan early. If you're wanting to overpay or repay the full loan early, make sure you check if there will be a charge.