Mistake #1: Exceeding 50% Debt Burden Ratio (DBR)
UAE banks reject applications if your EMI exceeds 50% of monthly income.
Check first: Use our Loan Calculator UAE to ensure your EMI stays within limits.
Mistake #2: Not Comparing Total Interest Paid
A AED 200,000 loan at 7% for 5 years = AED 37,800 interest
At 8%, you pay AED 44,800 – AED 7,000 more!
Compare totals: Our Personal Loan Calculator shows exact interest differences between rates.
Mistake #3: Ignoring Salary Transfer Requirements
- ADCB: 0.5% lower rate for salary transfer
- Emirates NBD: Mandatory for salaries <AED 15K
Mistake #4: Overlooking Prepayment Penalties
Some banks charge 2% of remaining balance for early closure.
Mistake #5: Applying to Multiple Banks at Once
Each application drops your credit score by 5-10 points.
Borrow smarter: Always simulate your loan first to avoid these costly errors.
