Emirates NBD offers customers the option of a cash advance or a loan on a card. Learn the differences between the two and which option may be best for your financial needs. Understand the terms and conditions, interest rates, and fees before deciding.
Emirates NBD is a leading bank in the United Arab Emirates that offers a variety of financial products and services to its customers, including cash advances and loans on a card. These two options are similar in some ways but have distinct differences that may make one more suitable for a particular individual or situation.
A cash advance is a short-term loan that allows the borrower to withdraw cash from an ATM or over the counter at a bank. Emirates NBD customers can take out a cash advance on their credit card by using it at an ATM or by requesting a cash advance at a bank branch.
- The cash advance amount is usually a percentage of the credit limit on the card, typically around 50%.
- The interest rate on a cash advance is generally higher than the rate on purchases made with the card.
- There is usually a cash advance fee, a percentage of the amount withdrawn.
- Repayment is usually required within a short period, such as two weeks.
However, cash advances also come with several disadvantages. One of the main drawbacks is that they are typically more expensive than other types of loans. Banks often charge a higher interest rate on cash advances and additional fees. This can make it more difficult for customers to pay off the loan in a timely manner. Additionally, cash advances are not typically reported to credit bureaus, which means they will not improve a customer’s credit score.
Table 1: Comparison of Cash Advance and Loan on a Card
|Feature||Cash Advance||Loan on a Card|
|Amount||Percentage of the credit limit||Variable|
|Fees||Cash advance fee||Processing fee|
Loan on a Card
A loan on a card is a long-term loan taken out using a credit card. Emirates NBD customers can apply for a loan on a card by visiting a bank branch or through the online banking platform.
- The loan amount is usually a variable based on the borrower’s creditworthiness.
- The interest rate on loan on a card is generally lower than the rate on a cash advance.
- There is usually a processing fee for taking out a loan on a card.
- Repayment is usually required over a longer period, such as several months or years.
However, it should be remembered that loans on cards typically require a more extensive application process than cash advances. Customers may need to provide additional documentation, such as proof of income and employment, as well as other financial information. Additionally, loans on a card may also have a longer processing time, which means customers will have to wait longer to receive the loan.
Both cash advances and loans on a card have their own advantages and disadvantages. A cash advance is a good option for those who need cash quickly and can pay it back within a short period. On the other hand, a loan on a card is a better option for those who need a larger amount of money and can pay it back over a longer period. Ultimately, the choice between a cash advance and a loan on a card will depend on the individual’s specific financial needs and situation.
It is always advisable to read the terms and conditions, interest rates and fees, and charges of any loan or cash advance before making any decision. Additionally, it is important to consider one’s ability to repay the loan, as failure to do so can negatively impact credit score and lead to financial difficulties.
What is the Emirates NBD cash advance fee?
Emirates NBD, one of the leading banks in the UAE, charges a cash advance fee for its credit cardholders who withdraw cash using their credit card. The fee is a percentage of the amount withdrawn, typically around 3%. Additionally, a minimum fee of AED 50 may also be charged. It’s always recommended to check with the bank for the exact charges as they may vary based on the credit card type, account type and other factors.
2. What is the loan on a card?
A loan on a card is a feature offered by some banks that allow credit cardholders to convert their available credit limit into a personal loan. This feature is offered to eligible cardholders, and the loan amount can be used for a variety of purposes, such as consolidating debt, making large purchases, or covering unexpected expenses. The loan-on-card feature typically comes with a lower interest rate compared to a cash advance.
3. What is cash advance in Emirates NBD?
Cash advance in Emirates NBD is a feature that allows credit cardholders to withdraw cash using their credit card at an ATM or bank branch. The cash withdrawn is then added to the cardholder’s credit card balance, and interest is charged on the amount withdrawn. Cash advances typically have a higher interest rate than regular credit card purchases.
4. What is the significant difference between a cash advance and loan on card?
The major difference between a cash advance and a loan on a card is the purpose and interest rate. A cash advance is intended for short-term cash needs, such as emergencies, and typically carries a higher interest rate than regular credit card purchases. On the other hand, a loan on a card is intended for larger expenses or consolidating debt and comes with a lower interest rate. Additionally, a cash advance is a one-time withdrawal, whereas a loan on a card is a separate loan that needs to be repaid in installments.
5. What is the process of getting a loan on a card in Emirates NBD?
The process of getting a loan on a card in Emirates NBD varies depending on the type of card you hold and if you are eligible for the feature. However, typically, cardholders can request a loan on a card through the bank’s online banking platform or by visiting a branch. They need to provide information such as loan amount, repayment tenure, and other required documents. The bank then evaluates the request and approves or declines it based on its creditworthiness.