Banker: Banks are keen to activate their sales and achieve good annual closings
Banks cut interest on personal and real estate loans and cards
A monitoring conducted by Emirates Today showed that interest rates on personal and real estate loans fell by 1%, and on credit cards by 0.5%.
The data collected by Emirates Today from the websites and customer service centers of the banks: Abu Dhabi Islamic, First Abu Dhabi, Dubai Islamic, Abu Dhabi Commercial, Emirates NBD, Commercial Dubai, and Ras Al Khaimah National », the existence of reductions in interest rates for personal loans and buying debts at a rate ranging between 0.75 and 1%, as the interest rate starts from 3.2%" fixed ", while its price on real estate financing recorded a rate of 1.99%" declining ".
Stimulate sales
The banker who specializes in real estate financing, Ahmed Arafat, said that “banks are keen in the last quarter of every year to stimulate their sales and achieve good annual closings. Therefore, they offer a reduction in the interest rate on various financing, including real estate financing.”
He added that the last quarter of 2020 has a specificity, as it came after months of conservative policy in granting loans, given the repercussions of the new Corona virus pandemic, and the calm of demand for a period of six months, in addition to the decline in real estate prices, pointing out that the reduction came to 1 % On real estate financing, which is a large percentage that encourages dealers to buy, at a time when banks are achieving good operating returns.
Arafat emphasized that most banks had already reduced the interest rate on financing, and that the cuts are expected to continue during the coming period.
For his part, the banker Mustafa Ahmed said, “There is a reduction in the price of personal finance up to 1%, as the interest rate is currently less than 3% for citizens, and it starts from 3.2% for residents, in addition to the possibility of postponing installments two or three months before the due date of the first installment. ».
In the same context, the banker, Muhammad Ghazi, said, “The interest rate on purchases in credit cards includes many offers that reach 0% interest on paying with cards at specific outlets, whether for electronics, fitness gyms, etc., in addition to a reduction on The interest rate on the value of purchases that exceeded 1000 dirhams is about 0.5%, pointing to the banks' competition, as of last November, to conclude agreements with several outlets to activate payment with their cards, and there is actually an increase in marketing this product thanks to these agreements, which are often zero interest .
• The last quarter of 2020 came after months of conservative loan granting policy.
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