Whether you’re looking to buy a new car, get a new home, or do some considerable remodeling to your interiors, you may find yourself in need of a loan. The exact amount of the loan, which you may be granted, varies based on some factors, such as income, debt burden ratio (DBR), and your credit history. For those of you who don’t have background in finance, the DBR is the permitted ratio of the loans/credit facilities you may incur to your average monthly income, while the credit history is the record of your past ability to repay your loans/credit facilities.
In order to apply for a loan, the bank requests a few basic documents such as a copy of your national ID & some proof of income documents. Depending on the type of loan you’re applying for, the bank will request additional documents. Knowing your loan options will help you choose the loan that best fits your financial needs.
Here are some of the loans that are offered at EGBANK & their perks:
Personal loans can be used for any personal expenses. This makes them an attractive option for people with unsettled debts, such as credit card debt, who are looking to reduce their interest rates through transferring balances. Personal loan terms depend on your credit history.
• Loan amount up to EGP 1,000,000
• Loan tenor from 6 months up to 96 months
• Life insurance throughout loan tenor
Auto Loans are designed to help you buy a car that costs more than you can afford to pay in cash. The bank will decide on your loan term, interest rate, and maximum loan amount based on your credit score, DBR, and type of car.
• Finance up to 100% of car’s value
• Loan amount can reach up to EGP 1,000,000
Mortgage is long-term loans that allow you to buy a home. Like auto loans, mortgage loans usage is tied to your property (home), which means you risk foreclosure if you fall behind on payments. Similar to other loans, mortgage loan terms depend on your credit history and DBR too.
• Loan amount of up to EGP 5 million
• Loan tenor 180 months
• Competitive interest rates
• Free life insurance throughout loan tenor
To sum up, loan types vary because each loan has a specific intended use. Each type of loan entails different repayment terms, interest rates, and length of time (tenor) and depending on your circumstances & needs, one or the other may be a better choice for you.
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