Personnel loan issues in Qatar
It’s a very great help that the Qatar banks are offering personnel loan to expats. The banks are giving good sum with very less interest and easy documentation when compared to our native countries. But I need to highlight that the loan availing criteria shall be amended by Qatar banks and Qatar Central Bank.
In Qatar generally banks are issuing loan to expats based on their monthly salary transfer to the bank. Normally banks are giving loan on the basis that maximum 50% of their salary can be remitted back to the bank. As an example, for a person getting Qrs, 10000/- as monthly salary can take a loan to an amount which maximum Qrs, 5000/- shall be the monthly remittance. This is a common slab for the banks where the issue starts which affects a major volume of expats.
Generally speaking Qatar has two types of working class people based on salary and other benefits entitlements. One group getting a monthly salary with other free facilities such as Free housing, company maintained car, free fuel, free office meals, free tickets for family etc.. The second group getting a consolidated pay without any benefits as the amount is added in the monthly salary. For the first group the bank will issue a less loan amount and for the latter the amount is big as their salary transferred is also high. Bank is not considering that the latter has to pay for all their expenses such as housing, car loans, fuel, tickets etc from their consolidated salary and the monthly balance will be less for the latter group. According to me banks shall keep separate slabs for these two groups which helps the first group also to avail the same loan amount as latter. Normally banks had frozen the slab of repayment 50% of their monthly salary stating that the other 50% is required for their expenses in Qatar such as housing, vehicle etc. The same they are applying for the first group also who are getting all these facilities free from their company.
According to me banks shall redefine the loan issue criteria and keep separate slab for these two major groups taking into consideration not only the salary transfer to the bank but also the free facilities they are getting from company . This will helps the two groups getting the equal amount of loan. I know lot of people affected by this common slab even though they can remit more amount monthly to the bank as their expenses are very less due to the free entitlement of facilities.
I hope banks will consider this positively.
Yup.. i agree on the views of taking loan is not good and will end up paying for your whole life.. and that easily adds up to over 40%.
Better to save and spend within your means. I say this after been wrapped up in loans, credit card revolving bills.
It is a hole that once you step in.. it takes a mircle to step out... it appears so harmless.. yet it is a hole that has no end at the bottom..
looks like you are a banker. may be you can write a note to Qatar central bank..
sounds like you've been working on a bank, or you are an account executive!
wow, I learned something from your note leon_menezes! thanks for sharing such wisdom. more power to you!
well said mate,
guys dont take a loan its a waste of soo much money
Most banks offer loans on reducing balance basis which is worse
Honestly you land up paying a min 40 % extra
to determine the loan amount. If you feel it is unfaur, wait untill your friend has to start paying it back. Higher loan amount means higher payback amount. If he used his Gross salary to get a loan, he will obviously struggle to pay it back. I think yu are better off.
yeah..i got it..but a less amount wherein my collegue who falls in the second group got a very higher amount which i feels not fair enough..
So, you've been turned down for a loan?