Personal loans are the unsecured type of loans. There is no collateral required for it. These loans are provided on the basis of your credit history which checks the ability to repay the loan. The repayment of the loan is done by paying monthly installments where tenure is fixed. Banks in Bahrain provides personal loans on the basis of flat and reducing interest rates. They offer loans that follow Islamic principles also.
Bahrain banks provide several benefits for people opting for a personal loan. Like:
Various options are provided for self-employed individuals adn salaried individuals respectively.
Many banks provide a wide range of offers like free credit cards to the loan holders.
Some banks offer a grace period on the first few months of the loan approval.
Banks also offer repayment holidays where the loan holders can skip the installment payments for 1-2 months.
Can get an insurance cover for the loan
Personal loans compliant with the sharia principles are provided at most of the banks in Bahrain.
Can top-up loan.
- Both Bahrain Nationals and Expats are eligible for the finance in Bahrain.
- The maximum loan provided is BHD 100K.
- The interest rate varies with each individual. Mostly it depends on the applicant’s
income and the loan amount. It can start at 2.5% p.a.(fixed) or 4.5% p.a.(reducing).
- The minimum monthly salary required to get a Personal Loan in Bahrain is BHD 200.
- The loan amount approved will be based on the applicant’s income.
- The maximum tenure that can be availed is 7 years
- 0.12%-2.5% of the loan amount approved is charged as processing fees on the loan
- Early settlement fees charged is 1% of the outstanding loan amount
- Can clear the loan by making partial payments where affordable charges are levied
Use our EMI Calculator to Calculate your Personal Loan Installments.
The eligibility criteria on a personal loan differ from bank to bank. Some common factors that are considered are:
- Must be a Bahraini resident of at least 21years
- Self-employed and salaried individuals are allowed
- Salaried individuals who have confirmed employment or work length of 1yr at least
- BHD 200 is the minimum monthly income required
- Salary transfer to the bank accounts depends on the bank
Basic documents that are needed are:
- Identity proofs driving license etc. for validation.
- For Expatriates – valid passport and a CPR with valid Bahrain residence permit
- Salary/employment proof
- Latest 3-6 months bank statement where the salary is getting transferred.
- Employment contract
- 3-6 months payslips
- For self-employed individuals – The commercial registration
Other documents may be requested by the bank depending on the applicant’s profile.
There can be various reasons behind a personal loan rejection. Most of the banks don’t reveal the reason. But some of the usual mistake banks consider are:
- Salary criterion
- Working in a company that is not listed with the bank
- Personal information provided is not correct or valid
- No proper documents