CBQ CAR LOAN - EMI Incrsd Without my knwldge
I am having car loan with CBQ for 5 years - 60 month EMI which started in Sept 2007 and was expecting it to end on Sept 2012. But last week I went to the bank and found that the loan will end only in Feb 2013(ie 64 Month EMI). Upon complaining with the bank, the bank gave me an answer that the interest rate was increased in 2008 and I continued to pay the same installment amount and that’s why now the increase in installment month. I am not able digest this, as I know people who have taken loans and the loan finished on the same expected time frame. What I think is Even if there is an increase in interest rate, the loan should finish by the agreed loan time.
Can anyone working in banking field clarify on this and I would like to know if the bank is giving me fake where I can go and complain this?
cbq offers flat rate on first year at 3.99% as their promotion and then the remaining months will be on variable rate.
Variable rate s*cks!
If you will recall some banks have promotions regarding defer of loan payments during holidays (eid etc...) and this promotion are communicated through e-mails or posts. If you fail to inform the bank they will assume that you want to defer and automatically skip your loan payment and thats where the problem starts because the interest for every loan deferred amounts to double? (depending on your bank). If your loan is payable in 4 years and depending on the number of holidays...you do the math.
We should really pay attention to every e-mails or posts that our bank sends us to avoid surprises.
Same is true with people who want to immigrate to other countries with ZERO info about immiration agencies' trics as of the loan whole sale sharks.
Earn , save , spend. Live simple life , within our own means.
People on loans are real reason to make prices go high, when they do not have their own money but spend tomorrow's, bank's money - loan - today !!!
Keep away from bankers / people who give / take loan to working class people.
Because the bank expects you to read and understand the loan agreement - in fact, most bank documents state exactly that right before your signature "I have read and understand and agree to the terms and conditions" If you don't take the time to read the loan agreement(or even ask questions) after seeing that statement who is at fault here?
Yes, I think the bank should ethically tell you about possible increases etc. but they are under no legal obligation to do so so far as I am aware so long as they keep to the terms and conditions you signed up for.
half of the people who replied is having the same problem...strange that the banks dont even tell u anything while taking the loan and not even inform the customer that there is a change in intrest rate and ur installment will be increased to so n so....nothing!!!
Hey,
Before signing the documents clear the doubts from the concern person. and go thrue the documents..conventional banks having policy to do whatever they need.
but fully islamic bank will give you contract by given fixed amount as a EMI (equal monthly instalment) in case if they wanna charge extra by breaching a contract you may go for low/legal action agaist the bank...
I have to chack again for the new update.. because while i checked in 2010 they had increased 1 instalments telling the increase in interest.
Dont know if there is more increase in last 1 1/2 years.
Hell.. they wont inform us atleast.
same to me in commercial bank also...i have also that prbolem...
The only difference is that I Got a Letter from IBQ, Stating that Interest Rate would Increase, other then that all the banks have almost the Same Policies....
Yes.. they (QNB) also done the same to me. Mine should finish in Aug 2012.. but last month I knew I could finish only in oct as the bank increased their rates..
Blady policies & cheating.. this was not informed when they provided the carloan. Also they just increased without even a notice.
Rate might change without any prior notice.
Read that clause in ur contract with them that you have signed.
do give loans in the begining very attarctive interst rate and whenwe get the delivery of the vehicle and take the loan plan there they will mention interst variable not fixed. when it is fixed customer is taken for a ride and must shell down extra one year or close to it.
I feel it is conventional bank policy to get more money but not in Islamic banks .
This happens when you are taking the loan at a floating rate instead of fixed rate! Most probably you may not have noticed the interest rate conditions on the application form, if you have a copy-check it out.