Bank dealers demanded a re -consideration of the four -year payment period of the personal loan, and a five -year car loan, according to the personal loan system issued by the Central Bank in 2011.
They explained to «Emirates Today» that the period of four years or 48 months in relation to the personal loan constitutes a great pressure on the customer, as well as the situation in relation to car financing, especially if its price is high.
They considered that it is good to increase the payment period of two or three additional years, the customer has a choice of what suits him even if this is an increase in the benefits on the loan, but in return the deduction will be less.
They added: “We do not demand an increase in the value of the loan, as it can remain as it is specified for 20 times the salary, but the opportunity to pay until seven years, for example, will reduce the burden of debt a lot, allowing the remaining amount of the salary to remain greater for the unable.”
They continued that «the customer in this case can choose the payment period that suits him according to his circumstances, but as a result of a period of 48 months currently applied, everyone always searches for postponements, or some resort to transferring his debts every period to benefit from the rest period that banks offer before the start of the payment, which ranges Between a month and seven months, which means postponing the burdens indefinitely. ”
Suitable conditions
Commenting, the banking expert, Awatif Al -Harmudi, said that “long -term loans are expensive for the customer.
She added: «In my opinion, the conditions set by the Central Bank of the personal loan and car loans are appropriate, because if the customer takes any of them for 10 years, there will be the inability to commit to payment for this long period, the opposite of the situation if the period is four years, so that the customer knows that He must pay the loans and rest from their burden.
She emphasized that it is important for the customer to study his capabilities and his ability to pay before borrowing, so that he is not subjected to stumbling in the future, noting that the decisions that were developed came after a detailed study of all bank employees, and not for a specific group or a small number.
Pros and negatives
For his part, banking expert Ahmed Youssef said that the extension of the payment period has positives and negatives. From a positive point of view, the long period reduces the burden of payment of installments on the customer, but the negative in the matter is that the more the period increases the benefits.
Youssef continued: “In general, if there is a possibility to reconsider, it is appropriate to give the customer the freedom to choose in relation to the personal loan, is he satisfied with four years or wants to extend it two or three additional years at the most appreciated, in a way that does not prejudice the rest of the conditions, provided that the banks clarify the difference in the benefits As a value and percentage, which the customer will bear if he chooses to increase the payment period. ”
He indicated that “the customer will have the ability to determine what is appropriate for it, whether general, four or seven years as a maximum.”
“As for car loans, new requirements can be set, for example, if the car is new, the payment period can be increased to six or seven years, especially for high -price cars that will be high, which causes a material burden on individuals, but in this case, in this case The customer can be obligated to pay 30% of the value of the car, for example, and leave his freedom to pay the rest of the amount until seven years, bearing in mind that the risk rate of car financing is less, as it is subject to the bank.
He pointed out that there are many flexible solutions, which can be left to estimate credit departments in banks regarding choosing what suits the customer, and consulting with him if the period for the payment is increased.
Decree transfer
In turn, a banker, who preferred not to be named, said that “the transfer of debts between banks or requests to postpone the installments increased a lot during the recent period, as a result of the customer’s search for a rest period of the burden of religion, which means that he bears new benefits with every transfer process, so it is better He gave him a period of somewhat longer payment, even if he carries benefits on it, as long as he chose it, “considering that” that, undoubtedly, will be much better than the continuous movement between banks. “
He added: “It is true that the banks grant the customer to postpone the monthly installment twice a year in relation to the personal loan, but the car loan is not allowed, and this also needs to be reviewed.”
He stressed that the decisions of the central bank regarding the value of the loan and its determination of 20 times the salary are “excellent”, many dealers have protected from stumbling as a result of taking financing that exceeds their capabilities, but it can also be mitigated by increasing the period two or three years, and leaving the freedom for the customer to choose the period that suits him.
Follow our latest local and sports news and the latest political and economic developments through Google News
