Is the feeling of needing an urgent cash loan in Dubai and the UAE concerning you at the moment?
Maybe you need short term funds but you think that such loans may be illegal under local law?
We deal with these issues all the time – and that’s why we’ve put together this helpful article that will inform you how best to get a loan in the UAE when you are in need of emergency cash.
What happens when you’re a few weeks from payday, but your rent is due now, or the family back home needs funds in a hurry or, that most frustrating of things occurs when your car breaks down unexpectedly, leading to a costly visit to the garage?
If this has ever happened to you, read on as we may save you a lot of time and money.
In these situations we need cash, fast, and with little hassle. So, is this possible in Dubai, Abu Dhabi, and the wider UAE? We must say, if you’re looking for a quick cash loan here in the UAE you are left with limited options:
Most banks such as Emirates NBD, HSBC, or ADCB do offer personal loans. However, the process can be time-consuming as it involves a credit check and you will need a minimum salary ranging from AED 5,000 to 8,000. Most banks also have a DBR (Debt Burden Ratio) limit to ensure you do not borrow more than you can reasonably afford to pay – this involves comparing your salary to any other loans and expenses you have to assess if you can repay the installments for a new loan.
So if personal loans aren’t suitable for your situation because they either take too long or you do not qualify per the bank’s minimum requirements, where do you go? .
Friends and Family
While from a financial cost point of few, this would be the ‘cheapest’ source of funds, we all know the emotional costs of asking friends and family are far higher. Aside from the loss of self-esteem and dignity of asking for a hand-out, there may also be some other ‘strings attached’
Plus, especially in current times, your friends may be in the same boat
This will be an informal moneylender (probably introduced to you by a well-meaning friend) who will lend you money immediately with almost no security or paperwork. Sounds like your prayers have been answered, right? Think again! This is a deceptive trap you REALLY don’t want to get into!
There is a reason they are called ‘Loan Sharks’. They will charge you extremely exorbitant interest rates, ranging from 500% to 1200% per year! Compare that to a standard personal loan from a bank at 15% to 18% per year! The Loan Shark may also ask you for a blank security cheque or hold on to your passport as collateral against this loan, both these practices are against the law
And if you cannot pay back on time (which, at these rates makes an already difficult situation even worse) they will use high-pressure tactics to collect their money including threatening your job, security and, in extreme cases, even your safety
This, unfortunately, is one of the methods that many UAE residents resort to when seeking short term cash. They do this because they don’t believe there is any other option, and personal loans are not offered by most Islamic banks. We hear so many reports of exploitation and deception from UAE residents – so we urge you to avoid loan sharks, and read on for a safe, legal alternative.
While this does not exist in the UAE, some countries like the US, UK and the Philippines have formal PayDay Loan companies who can offer you emergency cash loans against your next salary. They can be known as ‘dangerous emergency cash loans’. The appeal of these loans is that they don’t have credit checks, and rarely require a minimum salary. But, again, the drawback once again is extremely high interest rates, sometimes as much as 400%. Missing a payment will result in a negative credit rating, legal proceedings and the company will even reach out to your employer to try and collect their funds
You can obviously sell your assets like your car, jewelry or watches or even sell your gadgets, like your smartphone, laptop or tablet. But, second-hand values are usually much lower than what you expect. Plus having to replace essential assets like your smartphone or laptop will be more expensive later
A smarter option to borrowing money is to temporarily convert some of your assets to cash.
You can now sell your gadget or luxury watch for instant cash in a participating shop and Buy it Back in 30 or 60 days!
Getting urgent cash with us couldn’t be easier. Within a few clicks you will have a quote generated, and then you can take your gadget to one of our partner shops all over the UAE and receive instant cash. No credit check is required, and by following a few simple steps, you can easily get approval to Sell your gadget or watch with our licenced and verified shops across Dubai, Abu Dhabi, and Sharjah.
Best of all, your item is completely protected against damage and misuse as all our shops use our special tamper-proof, secure packaging when they store your asset. Nobody will have access to your goods until you return to Buyback, and that’s guaranteed! Our partner stores go through a rigorous selection process to ensure their expertise and professional customer care.
We have completed over 8,000 deals since our launch and have served over 78 nationalities so, whether you are a citizen, resident or just visiting the UAE, our service is for everyone!
No paperwork, No stress and No pressure to pay back – Get an Instant, no-obligation, Quote for your asset by clicking below: