Personal loan rates decline by 30%

Banks in the UAE are flush with cash, thanks to a growing economy and business development, both international as well as local and regional.

It is natural, then, that banks and other financial institutions have been more than willing to lend customers by offering attractive rates due in a bid to grow their loan books. 

While interest rates in years right after the financial slowdown were quite high, there’s good news in store for residents in the market for a personal loan right now.

According to bankers, interest rates have been steadily declining of late.

Farhad Irani, head of retail banking group at Mashreq bank, says the cost of money has gone down dramatically and there is excess liquidity in the market.

“Interest rates on personal loan have gone down a lot in the last one year from an average of 9.5-10 per cent to 6.5-7 per cent, a reduction of 30 per cent,” Irani told Emirates 24l7 in an interview recently.