The banks of the United Arab Emirates offer various promotional offers for new consumer loans, the purchase of existing liabilities, and financing vehicles until the end of February of the current year.
The offers include a grace period before the start of the first payment for personal loans, as well as a reduction of the interest rate from half to 1% depending on the size of the client's salary and his citizenship. According to information obtained from banks, it is expected that these offers will be available during the month of Ramadan or possibly that banks will launch other campaigns in honor of the holy month.
Mohammed Ibrahim, a banking expert, noted that current interest rates at the beginning of the year have decreased by 0.5-1% compared to the previous quarter of last year. Some banks offer three or four months of repayment grace periods, while others offer even more, depending on the client's salary. He added that competition for the acquisition of existing debts exceeds new loans, and for clients, it is important to reduce monthly payments.
Finance specialist Nadjem Mohammed clarified that most banks offer promotional offers on new consumer loans, the purchase of existing liabilities, and vehicle financing for government employees and company workers of category 'A'. The interest rate starts from 4% with a salary of 10 to 15 thousand dirhams, decreasing as the salary increases to 2.99% for a salary of 50 thousand dirhams or more.
In addition, banks offer promotion for the purchase of existing debts from other banks under conditions of payroll transfer. For new luxury vehicles, interest rates start from 1.89% for new auto loans for Emirati citizens with the possibility of starting to pay the first installment after three months. Banks also offer favorable financing for expensive vehicles up to 1.5 million dirhams or 80% of the cost of the car with a repayment period of up to 60 months.
