They emphasized that it does not exceed twice a year

Bankers: deferring monthly installments is subject to the policy of each bank

Bankers: the grace period before the date of the first installment, the customer will bear an increase in the value of the installment and interest.

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Bankers said that postponing monthly installments to customers is subject to the discretion of each bank separately, and according to its internal policy, but they made it clear that in total it does not exceed twice a year for personal loans, once every six months during the years of loan repayment, in addition to a postponement once a year for For a car loan.

They added to "Emirates Today" that some banks give a delay of two or three months before the start of payment, that is, a grace period before the date of the first installment, indicating that this would incur the customer an increase in interest, as well as an increase in the value of the monthly installment.

Bank clients had told Emirates Today that their banks had reduced the number of postponements of installments, to become once a year starting from the beginning of this year, after it was four times a year, and they demanded a review of this policy, taking into account the circumstances.

A committed customer

In detail, the banker Mustafa Fahmy said that banks usually give the customer who is obligated to pay his installments on time two postponements per year, the first for the existing personal finance, and the second for the car loan, provided that the sector in which he works is stable, and there is no job reduction or instability at work.

He added, "However, some banks give the customer an additional delay in emergency circumstances, and this requires special approval or on the occasion of the month of Ramadan, as some Islamic banks do."

New financing

For his part, banker Muhammad Jamal said, “Banks give the customer the choice in new financing between starting his first installment directly or delaying it for two or three months before he starts the payment plan, in addition to two postponements every year, but customers must realize that these months are carried over with interest to The end of the loan term, and it usually causes an increase in the value of the monthly installment.

He explained that the existing financing owners have the right to two postponements a year, the first for a personal loan, and the other for one postponement for the car premium, but there are banks when they see that the customer is not committed, or that their internal policy does not allow in terms of profits or operating returns, so it allows only one postponement. This is what happened recently with a number of banks, perhaps because they were affected by the Corona pandemic, after they granted customers a delay in installments for a period of up to nine months.

Situation assessment

In turn, the banker, Mustafa Ahmed, said that some banks have reduced the delay in installments from four times a year to one time for existing financing, but the majority offer their customers twice a year.

And he indicated that the banks assess the situation regarding the postponement now in a slightly different way due to the circumstances of "Corona", as they take into account the commitment of the customer, and the number of times he obtained a delay within the support plan that the banks implemented last year, in addition to the financial position of the bank itself in terms of profits and revenues, and others. Among the matters that are determined by the policy of each bank, and what the risk management sees in it.

Ahmed added that it is better for customers to pay the installments on time, and not to postpone them unless necessary, because that brings them accumulated benefits.

fees

The Central Bank has set a fee of 100 dirhams for the installment postponement fee, and gives banks the freedom to grant the customer two deferrals every year, as a maximum, for a personal loan, once for a car loan, according to the Personal Loans Law issued in 2011.

Mustafa Fahmy:

• “Banks usually grant the obligated customer two postponements per year, the first for personal finance and the second for a car loan.”

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