Banks offer “last quarter” offers to buy debts and postpone the first installment up to 7 months

Banks are currently active in submitting their offers for the last quarter of the current year 2024, the most prominent of which is purchasing the debts of customers with other banks.

Information collected by Emirates Today from these banks showed that interest rates on transferring debt start at 2.7% for citizens with high salaries, and range between 3.5% and 3.7% fixed for non-citizens, while they vary according to salary, number of years of service, as well as Employer classification.

Some banks also give customers who obtain a credit card, in addition to transferring their debts, an “iPhone 15” phone after three months of regularly transferring the salary to the new bank.

According to the information, these banks allow a “rest period from payment” starting from three months to seven months, at a time when this period can reach nine months, if the customer’s salary and credit rating allow for this.

Banks agree to grant additional amounts above the debt transferred to them, provided that the monthly deduction does not exceed 50% of the regular income or monthly salary of the customer.

Banker Imran Akbar told Emirates Today: “The recent reduction in interest rates, in addition to the availability of large amounts of liquidity at banks, supports their expansion in attracting new customers, by purchasing their debts from other banks, which contributes to reducing their monthly deductions, in If they do not want to receive additional amounts.”

Akbar pointed out that a large portion of the personal financing that took place over the past four years was at a high interest rate, as a result of raising the main interest rate, explaining that with the beginning of a decrease in interest rates, it became better for customers to move to other banks and benefit from the reduction on the one hand, in addition to Obtaining a period of relief from the burden of debt, which varies from one bank to another, but starts from three months and reaches six or seven months, during which the customer receives his full salary before he begins to pay the first installment and regular monthly payments.

For his part, banker Ahmed Ibrahim said: “Some banks are usually active in the last quarter of each year, in order to close their budgets with high profits, according to established plans and goals. Therefore, we find current offers on most products, but the most concentrated is the purchase of customers’ debts from banks.” Others with reduced interest, and granting accompanying benefits such as postponing the payment of the first installment for months, usually ranging between three and six months, and the period may increase according to the customer’s credit status.”

He explained that the first grace period to postpone payment is often accepted by the majority of customers who want to reduce the monthly deduction, and at the same time do not want to burden themselves with new debts or additional amounts.

• Postponing payment is accepted by the majority of those who want to reduce the monthly deduction, without burdening themselves with new debts.