Working hard but still struggling to make ends meet? Is there an urgent expense (e.g. medical, school, business, etc.) that you need to take care of? Don’t worry because you can always try applying for an urgent cash loan.
In Oman, there are quite a number of banks that offer cash loans or personal loans. These are available to both Omani nationals and expat residents, including Overseas Filipino Workers (OFWs). In this article, we will talk all about cash loans — eligibility, requirements, and the banks in Oman where you can apply for such loans.
Contents
Loan Guide for Pinoys in Oman
Before anything else, let us discuss some of the reasons why a person would need a personal loan. We will also go over some of the important terms involved when applying for a bank loan.
Reasons for Getting a Loan
There are many reasons for getting a cash loan or personal loan. You might be planning to buy a new house, a new car, or renovate your home. You probably need to purchase electrical appliances, or a major equipment for your businesses. Or perhaps you have a medical emergency, and you need money to pay for hospitalization, treatment, and medicines.
Whatever the reason, a personal loan could be just what you need. Of course, keep in mind that there are specific loans designed for different purposes: house loans, vehicle loans, educational loans, and so on. Before applying for a personal loan, be sure to take a look at these specific loans first.
About Bank Loans
Meanwhile, it’s also important to know the different terms involved in bank loans. Here are some of the words that you will encounter:
- Loan Amount. This is the amount of money you could expect to borrow from the bank.
- Interest Rate. This is the interest rate of the loan; it could either be a flat rate, or a variable/reducing rate.
- Loan Tenure. This refers to the period of time during which you will pay for the loan. It is usually indicated in months or years.
- Monthly Installment. This is the amount of money you are expected to pay each month throughout the loan tenure.
- Early Settlement Fee. This refers to the fee charged if you decide to pay for the entire loan before the end of the repayment period.
Eligibility
The eligibility criteria for cash loans may vary from bank to bank. Nonetheless, these usually include the applicant’s age, employment status, income, and other factors.
For example, to qualify for the National Bank of Oman’s Personal Loan, an applicant must:
- Be 18 to 60 years of age; and
- Have a minimum salary of OMR 300 (for Omani nationals) or OMR 400 (for expat residents).
Similarly, to be eligible for Bank Dhofar’s Personal Loan, applicants should:
- Be 18 years old or above;
- Have a minimum salary of OMR 320; and
Be working for a company that is part of Bank Dhofar’s approved employers list.
On the other hand, the ahlibank’s eligibility criteria are slightly different. To qualify for the bank’s MyLoan product, an applicant must:
- Be 21 years old or above; and
- Have a minimum salary of OMR 300 (for Omani nationals) or OMR 500 (for expat residents).
In any case, prior to submitting a loan application, see to it that you meet the criteria of the bank that you plan to visit.
Requirements
The documentary requirements for a cash loan may vary from bank to bank, as well. Nevertheless, here are some of the general requirements:
- Copy of National ID (for Omani nationals);
- Copy of Passport (for expat residents);
- Copy of Labor Card (for expat residents);
- Salary Transfer Letter;
- Salary Certificate;
- Passport Photo;
- Recently-paid Bill (e.g. electricity or phone); and
- Bank Statement for the last 6 months.
List of Banks that Offer Loans
And now, let us take a look at some of the banks in Oman that offer cash loans to Omani nationals and expat residents, including Filipinos:
1. ahlibank
MyLoan is a personal loan offered by ahlibank. To be eligible for this loan, applicants should have a minimum salary of OMR 300. although salary transfer is not required. MyLoan has a maximum repayment term of 4 years. The flat rate is 4.6%, while the reducing rate is 8.28%.
2. Alizz Islamic Bank
Alizz Islamic Bank offers not just one, but two types of cash loans: Personal Finance (Goods), and Personal Finance (Services).
The first type of loan is based on “Murabaha,” an Islamic principle that enables people to buy goods at competitive prices. Personal Finance (Goods) is designed for purchasing household appliances, electronic equipment, and other products. It is offered to Omani nationals and expat residents, to employed as well as to self-employed customers. Applicants need to have a minimum salary of OMR 350 to avail of this loan.
Meanwhile, the second type of loan is based on “Ijarah,” an Islamic principle that enables people to avail of services at competitive prices. Personal Finance (Services) is designed to pay for educational expenses, medical expenses, and other services. Both Omani nationals and expat residents can apply, including employed and self-employed customers. Just like the first type of loan, this product requires applicants to have a minimum salary of OMR 350.
3. Bank Dhofar
Another bank that provides cash loans is Bank Dhofar. The bank’s Personal offers financing of up to OMR 500,000, with a flat rate of 4.5% and a reducing rate of 8.1%. Salary transfer is not necessary, and the repayment period is up to 10 years. Bank Dhofar’s online services also makes it easier to pay and track loan installments.
4. National Bank of Oman
With a minimum salary of just OMR 300, customers can apply for the National Bank of Oman’s Personal Loan. This loan has a flat rate of 4.3%, and a reducing rate of 7.74%. Salary transfer is not necessary, and borrowers can opt to defer monthly payments up to two times annually.
5. Oman Arab Bank
Omani nationals and expat residents who are 18 years and above can apply for Oman Arab Bank’s Personal Loan. It has a flat rate of 4.5%, and a reducing rate of 8.1%. The minimum salary requirement is OMR 325 for Omani nationals, and OMR 500 for expat residents. The repayment period for this loan can be up to 10 years.
Summary
If you are planning to apply for a cash loan or personal loan in Oman, we hope that the above guide has been helpful. Before filing a loan application, always make sure that you meet the eligibility criteria and requirements. Moreover, once your loan has been approved and disbursed, see to it that you pay your monthly installments regularly to avoid any problems and penalties.
Speaking of cash, are you the type of person who prefers to buy online? If so, check out this list of the best online shopping websites in Oman!