In some cases, deferring payments may lead to an extension of the financing period or the imposition of a limited administrative fee». He added: «This option is a positive initiative that falls within the framework of the social responsibility of financial institutions, as this step helps customers manage their financial obligations during a period when expenses related to the month of Ramadan, the Eid al-Fitr holiday, and vacations may increase. Such initiatives also contribute to strengthening the relationship between banks and customers and reinforcing trust in the banking sector». Nasser continued: «However, these initiatives remain at the discretion of each bank and are not mandatory, although the Central Bank provides banks with the flexibility to offer such facilities to their customers», noting that some banks may refrain from widely offering the deferral option, especially in the case of long-term financing, due to considerations related to credit policy and liquidity management, and sometimes due to caution to prevent repeated deferrals from extending the loan term, which may raise questions related to regulated financing periods for some products». He explained: «For example, if a mortgage loan is for 20 years, and two installments are deferred each year, this could theoretically add around 40 months to the repayment period, equivalent to more than three additional years, making the loan term about 23 years and 4 months instead of 20 years. This means the customer's financial obligation remains in effect for a longer period, in addition to an increase in the total financing cost due to the extension of the loan term». Nasser said: «However, the deferral option can be a useful tool when there is a real need for it, but for a customer who can manage their financial obligations, it is better to continue repaying according to the original schedule and not resort to deferral unless necessary, so as not to lead to an extension of the loan term and an increase in the total financing cost». Nasser sees it as beneficial for banks that do not currently offer this option to consider providing it within a structured and clear framework, making it available to customers when there is a real need, while achieving a balance between the customer's interest and the bank's risk management requirements, which could help generalize this positive experience and enhance the role of the banking sector in supporting society.
Special Offers and Facilities Some banks in the country have already launched special offers during the month of Ramadan, including financial facilities and flexible options such as deferring installments for eligible customers, while one bank usually grants customers an 'additional' annual deferral on the occasion of the month of Ramadan and the Eid al-Fitr holiday, in addition to the biannual deferral of two installments. Other banks have also provided a deferral on the first installment for some loans as part of seasonal banking campaigns aimed at supporting customers during this period and increasing demand for financial services.
Customer Requests Many customers have requested the banks they deal with to defer payments on their financing for the current month of March, on the occasion of the Eid al-Fitr holiday, especially given the decision to receive salaries early before the holiday. This came in response to a recent announcement by 'Al Ittihad' newspaper that some banks in the country have launched an initiative to exempt customers from fees for some banking services, such as deferring installments, international money transfers, or ATM withdrawals outside the country.
Customer Demands A large number of customers stated that this initiative is limited and does not cover everyone, noting that based on their experience in deferring the monthly installment, most banks charge a fee and also refuse to defer the monthly installment if the customer has exhausted the allowed number of deferrals, which is twice a year. Some added: «Banks also do not agree to grant any deferral on installments for customers with long-term loans extending for more than four years, whether they are real estate financing or old personal loans», urging the banks to grant them this banking facility to alleviate the burden of debt during festive periods like Eid al-Fitr. They explained that the last days of the month of Ramadan usually witness a noticeable increase in household expenses, noting that spending includes buying clothes, gifts, hospitality expenses, travel, and visiting relatives, which increases the volume of spending compared to other months of the year. They confirmed that deferring one installment during this period can give families more flexibility in managing their budgets without affecting their long-term financial obligations. Some customers also referred to similar initiatives that banks in the country had previously offered in previous seasons, whether during the month of Ramadan or on other occasions, by providing the option to defer the installment or reschedule payments according to specific controls, emphasizing that these initiatives enhance the relationship between banks and customers and support the financial stability of families.
A Discretionary Option Furthermore, banking expert Amjad Nasser told 'Al Ittihad': «Deferring installments remains an option that some banks offer according to their internal policies, and it is usually done through a request submitted by the customer, which is evaluated based on the payment history and creditworthiness».
