You will need to sign cheques covering the value of your loan amount, but you are not required to pledge any assets as collateral against the personal loan.

The upfront costs pertaining to a loan is the processing fee of 1% of the loan amount (Processing fees –Max AED 2500) & insurance fee of 1% + VAT of the loan amount.

EMI also known as equated monthly installment is calculated using the total loan amount, the interest rate charged, the tenor of the loan and 1st installment payment date.

A credit card is essentially an unsecured loan; you can borrow money to spend up to a certain limit and then pay it back in the future. There is generally a minimum amount that you must repay each month.

The credit limit of any credit card is the amount you are allowed to borrow at any one time.

A balance transfer involves you transferring the balance from one credit card to another or to any other source of debt, giving you more time to pay off your existing debt without racking up a huge bill because of growing interest.

Specialised 0% balance transfer cards allow you to do so and will give you a period of time, often up to 30 months, during which no interest is charged. This affords you a bit more time to save up the money to pay off the initial debt. You will generally have to pay a one off fee for the actual balance transfer, but this will be negligible compared the amount you’ll save in interest that you’re not paying.

For the most part, if you pay off the balance of your credit card in full each month, you won’t have to pay anything at all.

It is only if you do not pay it off in full that the interest will kick in. If you have a card that comes with an introductory 0% interest period, then for that whole time, so long as you keep up with the minimum monthly payment, you won’t have to pay any interest whatsoever.

A comprehensive insurance policy will cover you against your own loss or damage as well as third party property damage. Loss or damage could result from an accidental collision, fire, burglary, external explosion, self-ignition, lightning, theft and any malicious act by a third party.

Third party liability policy is the basic coverage that is mandatory as per the UAE law and it covers death or bodily injury to any third party/person as well as property damage caused by the insured’s vehicle. The policy does not cover damage/loss to the insured vehicle.

The current car value is calculated by comparing the average market value of the same vehicle. The car value is depreciated by 15% every year thereafter.

Comprehensive coverage can be provided as long as your vehicle is less than 10 years old. After that, the coverage will be underwritten on a case by case basis.

No Claims Discount or No Claims Bonus is a special discount on the insurance premium given to individuals who have an accident-free record for a minimum of 1 year.