Personal Loan or Car Loan
I am new in qatar and just accomplish driving license test. I am looking for a car and surprised there's new rule in qatar which is different to what was told by my friend that currently bank required Down Payment for car loan. My bank is HSBC. According to bank officer this is new regulation and applied to all bank. But I also heard one of friend can get a new car without DP but using personal loan, this was arranged by car dealer and his bank (not HSBC). I would like to ask what the difference between personal loan and car loan?interest rate?i tried to search personal loan from QL and found horrible news in case we can't pay the loan, is the same risk also applied for car loan or there's different between them?Thanks, and pls bear with me as I am totally new especially for economic stuff like loan
Dear,I personally vote for personal loan, depending on your salary you can get up to 15 times your basic, get the loan, purchase the car using the cash from the loan. Personal loans are always cheaper than car loans.As for the bank, I strongly recommend IBQ, very friendly staff, competitive rate and friendly staff.
I am in the middle of moving account out of HSBC by now (not only because of strict regulation by HSBC, but also lower interest offered by QNB afaik), but don't think able to do it immediately since HSBC CS said I had Mastercard which will remain active until 45 days even though I already paid all the credit balance and HSBC closing the credit card account. So the only way is waiting for next 45 days before they released clearance letter which I can use to let my company move salary transfer account to other bank and to also be used for opening new account in other bank.I am not sure if this is only another 'weird' information / regulation delivered by HSBC CS or it is same for all other bank in Qatar. I think HSBC has too much strict rules for their customer (which is probably good one, but make at least myself not comfortable with that). Hope they'll release that clearance letter as promised later and not giving another reason to keep it. Cheers.
Thanks guys for the helpful information. As for QNB, i also just heard about their promotion and also already go directly to the bank few days back and asking about the car loan. The CS told me just like what honeylynne said, it is possible to have downpayment paid using personal loan and the rest using car loan. I don't know why CS in HSBC told me earlier that I can't use that way and saying that there's rules from Qatar central bank personal loan is not allowed to use for purchasing car, even only for downpayment, and all bank in Qatar should follow that regulation. I am in the middle of moving account out of HSBC by now (not only because of strict regulation by HSBC, but also lower interest offered by QNB afaik), but don't think able to do it immediately since HSBC CS said I had Mastercard which will remain active until 45 days even though I already paid all the credit balance and HSBC closing the credit card account. So the only way is waiting for next 45 days before they released clearance letter which I can use to let my company move salary transfer account to other bank and to also be used for opening new account in other bank.I am not sure if this is only another 'weird' information / regulation delivered by HSBC CS or it is same for all other bank in Qatar. I think HSBC has too much strict rules for their customer (which is probably good one, but make at least myself not comfortable with that). Just hoping they'll release that clearance letter as promised later and not giving another reason to keep it.Cheers.
I think the interest on personal loan will be higher than car loan. It will be better to clarify it with your bank as the interest rate varies.
I just applied for a personal loan in a bank. Yes, nowadays for car loans, the bank requires 20% downpayment of the total amount of the car you're trying to buy.Their suggestion was to apply for a personal loan then I can buy the car that I want. If you will apply for a personal loan the maximum interest that a bank will be charging is 6%, before it was 10%.Ask your bank for more details. But for my case, since I have already existing account at Ahli Bank, I've applied for a personal loan there. They have nice offers which you can not resist.Well, it may depend on the person who has acquired such loans (may it be a personal loan, car loan, housing, etc) on how they will manage their payments and knows what they are paying.
Your Bank is Not good bank with my experience
A loan/credit, either personal or car, or house or plastic (credit cards) or any type is a loan.
In the end not being able to pay it back carries the same risks on all of them. Defaulting on a loan or a credit card is not good since it could end in a legal case against you. And in the ME it could lead to jail time and deportation with the respective BAN to that person.
Once again the risk is similar to any loan/credit not being repaid.
Regards!!