1% average reduction and 2,500 dirhams ceiling transaction fee

Banks cut interest and fees on personal loans

The percentage of reduction depends on the value of the customer's salary and whether he is a citizen or resident.

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A large number of banks operating in the country have reduced the interest and financing rate on personal loans, in addition to reducing transaction fees, as of early October, taking into account the customer's credit history and his commitment to pay his installments on time, according to the data of the credit report issued by the Al-Etihad Credit Bureau.

Emirates Today monitored the banks that offered a reduction in the interest rate for the personal loan, namely: Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, First Abu Dhabi Bank, Emirates Islamic Bank, Dubai Islamic and Emirates NBD, where the reduction rate ranged between 0.8% and 1% approximately. According to the value of the customer's salary, and whether he is a citizen or resident.

As for administrative fees, they do not exceed a maximum of 2,500 dirhams, regardless of the value of the loan, after it was previously 1.05% of the total financing.

According to the data collected by Emirates Today, some banks have reduced the transaction fee to 1250 dirhams only, in order to make it easier for customers.

Banker Tamer Abu Bakr said, "The banks are competing to attract customers to market their products by reducing the interest rate and fees, because the demand is affected by the repercussions of Corona, but in return, the customer's ability to repay and his credit history is confirmed through the reports of the Union Credit Information Company."

Abu Bakr indicated that the interest rates on the personal loan are currently between 2.4 and 2.7% fixed, pointing out that the value of the salary that the customer receives and whether he is a citizen or resident determines the interest rate.

He pointed out that since the reopening of the economy, banks have been active again in marketing their various products, especially in light of the strong levels of liquidity in them, and competition appeared clear to attract new customers, even that some banks made a reduction since September, but the majority took this step from the beginning This October.

According to the latest Central Bank statistics that monitor the components of the individual loan portfolio and the share of each type of financing in it, personal loans account for 41.4% of total individual loans amounting to 325.3 billion dirhams, equivalent to 134.7 billion dirhams, by the end of last July.

Secret Pen Warning

First Abu Dhabi Bank warned its customers yesterday about the fraud of the "magic ink" in a message in which it said a text: “The fraudsters will try to communicate with you as representatives of the bank, and they will fill out the application form and the check for guarantee using a (secret ink) pen, which will then be amended to be able to withdraw Your money ».

The bank provided several tips to avoid falling into this type of fraud, including the following:

Do not issue a blank check to anyone.

Always make sure to fill in the name of the beneficiary and mark it as "the beneficiary of cashing the check" using your pen.

- Before submitting any personal information or documents, always check if the person represents the bank by checking his official ID card.

- If you have doubts, contact the bank on its contact numbers and make sure that the bank representative's information is correct.

Remember to always fill in the necessary information using your own pen.

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