The personal loan in Qatar is a non-secured loan that provides Qatari nationals or to foreigners living in Qatar from national or international banks. It is a kind of borrowing that needs no guarantees or assurances and it goes for a short period not more than 48th months.
Although the personal loan in Qatar only contains payment terms for the few years, you can use it to overcome any financial difficulties that you’re facing at the current stage.
Even though you are from a different country, you can take advantage of the short-term personal credit from banks but it requires a residency visa in Qatar.
As a foreign national in Qatar, it is not as easy as getting a personal loan in Dubai, despite this, many foreigners who have good credit score and repayment capacity have benefited from it.
If you are looking for a personal loan in Qatar you should qualify from the bank requirement first, and second, your employer has to play the important roles for the processing.
Is possible the personal loan minimum salary 3000 in Qatar?
The majority of workers in Qatar are receiving less than 3000 Qatari Riyal a month and it is the number of people most in need of the bank credit too. It is very hard to find the banks in Qatar which offer the Personal loan to the person who has a salary of 3000 per month.
How to apply for a personal loan to Qatari banks?
To apply for the personal loan to the banks of Qatar you should check your eligibility on the bank website. If you are qualified, fill in and submit the callback form. The bank staff will review your application and call you back if they believe safe to issue a loan against you.
The most important factor which influences the eligibility of the PL in Qatar is your monthly income but some of the banks need more than it. The most troubling thing is that the respective banks or the National Bank of Qatar should include your company in their list for issuing the loan from them.
On the course of seeking financial assistance from the banks of Qatar. You should always evaluate and compare their offering including the interest rate, loan management fees, installment defers facility, penalties rates in case of not meeting the due, etc.
Most of the banks in Qatar need transferring your salary account to any branch of their bank or you should have previously maintained an account with them. Only a few banks are available in this country which provides personal loans for non-listed companies in Qatar.
The documents required for applying to personal loans.
- Valid Qatar ID card
- Valid Passport (expatriates)
- Salary certificate
- salary assignment letter from employer
- Post-dated repayment cheques for the tenor and amount borrowed (expatriates)
- The bank may request additional documents
The interest calculation.
Although the requirement for the personal loan is different from bank to bank the interest calculation methods are similar among the banks in Qatar as well as in the GCC.
- Reducing Balance Method:
With this method, interest on your outstanding loan balance will be estimated at the same annual rate for a period of 360 days basis. The interest on your loan balance reduces every month as you pay the installment.
This means the interest you should pay as the proportion of your monthly installment, it will decrease over the period of the loan as the loan balance reduces from your repayment amount.
Here is the simple formula that applies to calculate the interest and the amount of the interest will be higher or lower depending on your outstanding principal till that date.
Daily loan balance Χ Total Annual Rate Χ number of days / 360)
2. Flat rate interest
The flat rate interest means the interest will not change how much installment you pay and how much principal you have reduced. For example, you have borrowed 20000 from the bank for 1yrs and the interest rates are 5% your first installment will
- 20000/12 = 1666.67 principal
- 20000 X 5%/12 = 83.34 interest
monthly installment = 1750.01
While the banks of Qatar lend both Qatari citizens and foreigners, there is also a certain discount on the annual interest to the local compared to the ex-pats. The offering loan amount also higher to the Qatari nationals than the foreigners.
The process for the private loan in Qatar
As I said earlier, you should first test your personal loan eligibility on the bank’s Website and follow the following steps;
Step-1: Fill the callback form or submit your loan application if the service is available. Most of the bank needs you to register on their website providing the true facts about you and your monthly income.
Step-2: Prepare for the required document, all the information regarding the vital documents may available on the bank website, however, the bank can request you additional credentials if they needed.
Step-3: Visit the bank’s staff and discuss the credit that you have needed, always the credit officer guides you with an appropriate amount after analyzing your repayment capacity.
Step- 4: Follow up after processing your loan, the banks grants you the personal loan not longer than a week since you have processed. however, it is very important for you to get in touch with the credit department to know about the processing time it will take and to know if they need any other document to expedite your loan process.
Step- 5: Loan issuance and disbursement is the last phase of the personal loan process because the bank manager will verify your loan application base on the recommendation of the sales team. Once the loan is disbursed, your account will be credited and ready to withdraw.
Getting a personal loan in Qatar is easy if you have a high paying job or profitable business running in this country. When it comes to the low-income generator first thing to remember is no bank in Qatar will lend you unless your employer company signed for the guarantor and aslo has listed with that bank.
If you are looking for the private loans in Qatar they come with the high cost of the insurance they give benefit to the bank but adds you the more financial burdens. Therefore, you should analyze all the facts before you receiving it.
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