It includes deferment of installments, exemption from administrative fees and insurance
Banks offer offers on personal loans and transfer of “debts”
Tamer Abu Bakr: "Banks are trying to compensate for the lull in demand in the summer, and they can reduce the profit margin in exchange for increased sales."
The local market is witnessing banking offers, with the aim of stimulating the market and stimulating the demand for personal loans, including postponing the payment of the first installment up to three full months, and in some up to four months, and exempting the customer from administrative fees and insurance fees, in an attempt by banks to find a balance after raising interest rates. principal, and individuals are reluctant to borrow now.
The banker, Tamer Abu Bakr, said that banks are trying to compensate for the lull in demand that usually prevails in the summer, in addition to raising the main interest rates, by presenting marketing offers that include exemption from administrative fees for transactions, not requiring insurance on the loan, and giving the customer a period of rest from payment by deferring The first installment is for three months.
He added to "Emirates Today" that raising interest rates created a kind of caution on the part of individuals about applying for a personal loan now, so the banks took the initiative to provide these offers to strike a balance with raising the interest rate on financing.
Abu Bakr pointed out that personal loans are considered the least affected, as well as car financing, indicating that banks can reduce the profit margin in return for increasing sales.
In turn, the banker, Muhammad Abdullah, said that some banks postpone the payment of installments for the first four months, as a contribution to alleviating the burdens on dealers, especially those who transfer their debts from other banks.
He stressed that banks are currently competing by reducing administrative fees and insurance fees, or completely exempting the customer from them, while setting the profit margin to the lowest possible level.
He added that personal loans, car finance and credit cards are the most popular at the present time, although the summer is usually calm, but these offers stimulate the market and stimulate demand for personal finance of all kinds.
He pointed out that individual financing constitutes a good percentage of the loan portfolio of any bank, so banks are keen to meet the demand from this category, at distinct prices and fees, compared to real estate financing and corporate financing, for example.
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