Banks operating in the UAE have started offering seasonal offers in preparation for the holy month of Ramadan.
Some national banks in the UAE have reduced interest rates on all types of financing by rates ranging from 0.25 percent to 1 percent, and the offers include personal loans, car financing, and real estate financing.
A report prepared by the Emirates Today newspaper stated that interest rates on purchasing new debts and loans in some national banks have decreased to start from 2.55 percent, up to 4.5 percent fixed, depending on the salary and whether the borrower is a citizen or a non-citizen.
The interest on car financing also decreased by (half a percent) to 0.75 percent, falling to a rate of around 3 percent, while the real estate financing rate fell to around 4.5 percent.
The offers included, for the first time, lending to employees of companies not listed on the bank’s lists and new companies, but at a higher interest rate of (half a percent) than the percentage of offers made to employees of listed companies and institutions listed on the bank’s lists.
The customer is given a period of up to five months before starting to pay the first installment of personal financing, with free insurance on the personal loan, as well as the real estate loan, except that there is no grace period for the latter.
At the end of last January, the Central Bank of the UAE decided to keep the base rate on overnight deposit facilities at 5.40% unchanged, following a similar decision by the Federal Reserve.
The UAE Central Bank confirmed that this decision comes after the US Federal Reserve announced that it would keep the interest rate on reserve balances unchanged.
