No matter how hard you try to save money as an OFW, there are times when you may need cash urgently. Perhaps there’s a medical emergency in the family, or an unexpected calamity that affected your business. Whatever the reason, one of the steps you could take is to apply for an urgent cash loan.
Fortunately, there are many places in Oman that provide cash loans for citizens as well as expats. In this article, we present a brief guide to getting urgent cash loans — including loan product features, eligibility, and requirements. We have also gathered a list of several banks in Oman that offer such loans.
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Guide to Getting Urgent Cash Loans in Oman
Notably, if you were hired directly in Oman, your best option would be to apply for a loan with the bank where your salary is being credited to. Another option would be to inquire whether your employer is part of the bank’s approved list of companies. This way, you can get a loan with low interest rates and affordable payment terms.
Eligibility
When it comes to approving loan applications, each bank has its own set of eligibility criteria. Usually, factors such as nationality, age, employment, salary transfer, and minimum income are considered.
For instance, to qualify for ahlibank’s MyLoan product, an applicant must be at least 21 years old. For Omanis who are government or quasi-government employees, the minimum salary should be OMR 300. Meanwhile, for expats whose length of service is between two to four years, the minimum salary must be OMR 500.
On the other hand, Bank Dhofar’s eligibility criteria for its Personal Loan are as follows: the applicant must (a) be 18 years and above; (b) have a minimum salary of OMR 320; and (c) be employed by a company that is part of the bank’s approved employers list.
Similarly, the National Bank of Oman’s Personal Loan is available to applicants who are between 18 and 60 years old. For Omani nationals, the minimum salary should be OMR 300; whereas for expats, the minimum salary is OMR 400.
Requirements
As for the requirements, here are some of the documents that are usually needed when applying for a cash loan in Oman:
- Copy of valid National ID (for Omani nationals);
- Copy of valid Passport (for expats);
- Copy of Labor Card (for expats);
- Salary Transfer Letter;
- Salary Certificate;
- Passport Photo;
- Recently-paid Electricity or Phone Bill; and
- Bank Statement for the past six months.
Bank Loans: Important Terms
Before you apply for a loan with any bank, it is important to know and understand the various terms involved. Here’s a rundown of some of the major terms you’ll encounter when getting a loan:
- Loan Amount. This refers to the total amount of money to be borrowed.
- Rate. This refers to the interest rate on the loan product.
- Tenure. This is the length of time for payment of the product, usually stated in months or years.
- Monthly Payment. This refers to the effective monthly payment, which is calculated including fees and other costs.
- Annual Percentage Rate (APR). This refers to the annual interest rate of the product, which is calculated including fees and other costs.
- Early Settlement Charge. This is the fee charged when the borrower decides to settle the entire loan before the term ends.
Banks that Offer Personal Loans
As mentioned earlier, there are many banks that provide cash loans to citizens and expats in Oman. Here’s an overview of several banks in the country and their loan offerings:
1. Bank Dhofar’s Personal Loan
Through Bank Dhofar’s Personal Loan, applicants can loan up to OMR 500,000, with a loan period of up to 10 years. It has a flat rate of 4.5% and a reducing rate of 8.1%. Salary transfer is not required. What’s more, it comes with online services, so that you can check your loan and repayments anytime, anywhere!
2. National Bank of Oman – Personal Loan
The National Bank of Oman’s Personal Loan is offered at a flat rate of 4.3% and a reducing rate of 7.74%. The minimum salary required is OMR 300, although salary transfer is not required. Every year, borrowers can defer their monthly payment up to two times.
Moreover, this personal loan is covered by Credit Life Insurance, which means that the bank can waive all outstanding loan payments in the event of death.
3. ahlibank – MyLoan
To avail of ahlibank’s My Loan, an applicant needs to have a minimum salary of OMR 300. The flat rate is 4.6%, whereas the reducing rate is 8.28%. Salary transfer is not required, and the maximum loan term is four years.
4. Alizz Islamic Bank – Personal Finance (Goods)
As the name says, Alizz Islamic Bank’s Personal Finance (Goods) is intended for financing goods such as electronics, household appliances, furniture, equipment, and other products. It is based on the Islamic principle of “Murabaha,” which enables people to acquire goods at competitive prices.
This loan is available to both Omani nationals and expats, as well as employed and self-employed workers. A minimum salary transfer of OMR 350 is required for both government employees and workers in the private sector.
5. Alizz Islamic Bank – Personal Finance (Services)
This product is also from Alizz Islamic Bank. It is based on the Islamic principle of “Ijarah,” which enables people to acquire various services at competitive prices. It may be used to pay for medical expenses, education (e.g. tuition), and other services.
Similar to the bank’s personal finance for goods, this product is available to Omani nationals and expats, either employed or self-employed. A minimum salary transfer of OMR 350 for both government employees and private sector employees is required.
6. Oman Arab Bank – Personal Loan
Oman Arab Bank’s Personal Loan is available to Omani nationals and expats, age 18 years old and above. For Omani nationals, the minimum monthly salary must be OMR 325; while for expats, it should be OMR 500. This personal loan has a flat rate of 4.5% and a reducing rate of 8.1%.
Summary
As you can see, you have many options to choose from with regard to getting an urgent cash loan in Oman. As long as you meet the eligibility criteria and submit all the requirements, you can be assured of receiving a timely loan at affordable interest rates.
Speaking of cash, perhaps you are planning to buy gold sometime soon. Gold accessories are the perfect gift; they could also be considered as investments, too! If you are keen on buying gold anytime soon, here’s a list of stores and shops where you can purchase gold in Oman.