Bankers reported that the demand for borrowing, for individuals or companies, began to recover, as of this July, after a period of decline, due to the repercussions of the new Corona virus, stressing that banks made offers on cards, auto financing, along with good rates for personal loans and financing Companies.
They stressed to «Emirates Today» that the rates of recovery in demand ranged between 25 and 30% since the beginning of this July, compared to the levels of demand during the first quarter of this year, pointing out that the demand for real estate financing is stronger than it was before. They added that there are factors that contributed to the recovery of demand, the most prominent of which is the return of work to bank branches, noting that the sectors that were affected by Corona are the banks that are willing to grant facilities, while the rest of the other entities and institutions, there is no change in the policy of granting funds.
In detail, the banking expert, Mohamed Ghazi, said that “banks recently returned strongly, since the beginning of this month, in promoting credit cards, given the availability of a good monthly return, compared to personal loans or other types of financing.” He added that the risk ratios in granting Cards are lower for banks, as the customer only takes twice or twice the salary on average. He added that the demand, in general, began to recover since the beginning of this month, with the return of work in the branches, the opening of the economy and the resumption of activity, pointing out that banks are racing to meet the growing demand for loans of all kinds, as it can be said that the rate of growth, since the beginning of July, It ranges between 25 and 30%, compared to the demand for loans during the first quarter of this year.
Ghazi pointed out that the interest on card purchases, currently, ranged between 2.25 and 3.25%, but some banks raised their card fees, and this happened with those who sent them proactive messages stating this.
In the same context, the banking expert, Tamer Abu Bakr, said that “the three-month period, from March to the end of June, witnessed a noticeable decline in the demand for loans, which was met by a reservation by the banks themselves in granting various funds, especially for expatriates who left their jobs or were reduced Their salaries, ”he added,“ but as of this July, demand has started to recover, and in turn banks have started to attract customers with interest rate cuts and payment facilities, whether for individuals or companies, and in all kinds of financing. ”
Abu Bakr added that «the banks, too, returned to receive the dealers in the branches, which raised the demand for personal loans that witness very acceptable interest rates ranging between 3.5 and 4.5% annually», pointing out that the banks modified the lists of companies approved by them, so as to avoid the affected groups And expanded more towards the stable sectors, stressing that it can be said that the improvement in demand ranged between 25 and 30%, compared to the demand for loans during the first quarter of this year.
For his part, the banking expert, Muhannad Awni, said, "The demand for real estate finance has returned, since the beginning of this July, better than it was during the first quarter of this year, and there is a demand for buying in light of the down payment and lower prices," adding that There is a noticeable increase in the demand for real estate financing, whether for purchase or construction, and with growth levels of not less than 30%, since the beginning of July, stressing at the same time that the movement, during the current month, is much better than it was in the months of the crisis.
He pointed out that there are multiple financing options, related to the stability of interest for a year or more, according to what the customer decides, but prices on average revolve, currently between 2.75 to 4%.
And that "the real estate market in the UAE is characterized by vitality and high demand, especially in the aftermath of crises, as happened in 2008, given the competitiveness of prices and the desire of all nationalities to work and settle in the state."
- banks intensify the promotion of credit cards, because they provide a good monthly return, compared to personal loans and declining risk.
- Banks are conservative in granting credit facilities to sectors affected by the effects of "corona".