Life Admin, Schooling

The lowdown on education loans

education

Education in the UAE is an expensive necessity and paying for the fees upfront can be a struggle for many families. Many banks in the country will offer education loans for schooling both in the UAE and overseas.

Parents and students can apply for the loans, but you’ll need to prove a minimum salary of AED 5,000-8,000 to qualify. Banks will also ask that you get your salary transferred to their branch – if not, then it’s likely you’ll be offered a lower loan amount.

You will be charged a processing fee, which is usually 1% of the total loan amount, with the same fee applicable for an early settlement fee. There might also be an insurance fee on top of this, which can be anywhere from 0.5-1% of the loan amount.

To register, you’ll need to submit your passport copy, residence visa, salary certificate, banks statements for three months, acceptance letter from the school and post-dated cheques. Interest rates will vary between flat, variable and a reducing rate, but some can be as low as 2.35%, while the loan term set anywhere from one-nine years. Loans will be considered for students 18 and older, with the maximum loan limit usually around AED 250,000.

yallacompare.com Personal Loan

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