In the dynamic world of finance, personal loans have emerged as a versatile solution for individuals seeking to fulfill their financial needs, whether it’s for consolidating debt, financing a large purchase, or covering unexpected expenses. Liv, a pioneering digital bank in the UAE, offers personal loans that are designed to meet these diverse needs with ease and flexibility. Liv’s personal loan product is an installment loan, providing customers with a straightforward and efficient way to borrow and repay funds.

Factors to Consider When Taking a Loan

When considering a personal loan with Liv, there are several key factors to evaluate:

  • Interest Rate: Liv offers an indicative interest rate of 8.99% on a reducing balance per annum. This rate is crucial as it directly affects the total cost of borrowing.
  • Fees and Charges: Understanding the fees associated with a loan is essential. Liv charges a one-time processing fee of 1% of the final loan amount (minimum AED 500 and maximum AED 2,500), along with other potential fees such as early settlement, partial settlement, and late payment fees.
  • Eligibility Criteria: To be eligible for a Liv personal loan, applicants must be existing Liv account holders aged between 21 and 65, employed for a minimum of 3 months with their current employer, and must have a minimum salary of AED 5,000+ for at least 3 consecutive months.

Late Payment Protocol

In the event of a late payment, Liv imposes a fee of AED 52.5 (inclusive of VAT). This fee is billed only when the monthly repayment is not received in full by the due date. It’s important for customers to communicate with Liv in case of potential late payments to explore possible solutions and avoid additional charges.

Interest Calculation Explained

Liv calculates the interest on personal loans by adding the principal loan amount to the total interest and then dividing this total by the loan period in months. This method ensures that the Equated Monthly Installment (EMI) remains fixed throughout the loan term, providing clarity and predictability for borrowers.

Payment Terms

Liv’s personal loans are repaid through fixed EMIs over a period ranging from a minimum of 12 months (1 year) to a maximum of 48 months (4 years). This structured repayment plan allows customers to manage their finances effectively without any surprises.

Benefits of Taking a Loan with Liv

Choosing Liv for a personal loan comes with several advantages:

  • Digital Convenience: As the UAE’s #1 digital bank, Liv offers a seamless and efficient online application process.
  • Flexible Loan Amounts: Customers can borrow up to AED 200,000, providing significant financial leverage.
  • Competitive Interest Rates: With rates starting from 8.99%, Liv’s loans are designed to be affordable.
  • Transparent Fees: All charges are clearly outlined, ensuring customers understand the cost implications upfront.

Conclusion

Liv’s personal loan offering stands out for its simplicity, transparency, and customer-centric approach. By carefully considering the personal interest rate loans, fees, and eligibility criteria and understanding the terms of repayment, customers can make informed decisions that align with their financial goals. With Liv, borrowers have a reliable partner to navigate their financial journey, offering not just a loan but a pathway to achieving their aspirations.

By : Marybeth Randall