UAE banks unveil lowered interest rates in Ramadan 2024
Banks across the nation have commenced unveiling their seasonal promotions in anticipation of the forthcoming holy month of Ramadan, ushering in reduced interest rates across a spectrum of financial products such as personal loans, car financing, and real estate loans.
As per the communications disseminated by these banks to their clientele, interest rates for both existing and new loans have been revised downward, starting from 2.55% and capping at a fixed 4.5%, contingent upon factors like the borrower's nationality and income bracket.
In the realm of car financing, interest rates have undergone a reduction of 0.75%, resulting in a lowered rate hovering around 3%, while real estate financing has seen a decline to approximately 4.5%. Notably, the promotions extend to include lending facilities for employees of non-listed companies and newly established enterprises, albeit at a marginally higher interest rate of 0.5% compared to their counterparts in listed companies.
Furthermore, customers availing of personal financing are granted a grace period of up to five months before the commencement of repayments, coupled with complimentary insurance coverage for personal and real estate loans, albeit sans the grace period for the latter. Ahmed Youssef, a seasoned banking expert, elucidated that banks traditionally roll out diverse offerings during seasons and festivities to entice customers and bolster their asset bases, subsequently amplifying profits, with ample liquidity bolstering such initiatives accrued over the past two years owing to increments in key interest rates.
Youssef emphasized the prevailing stability in key interest rates and the robust liquidity in banks, which undoubtedly fuels the broadening of financing provisions. He underscored the robust competition among banks spurred by abundant liquidity and the imperative to deploy it effectively, manifesting in periodic promotional campaigns to showcase their array of products. This fervor for competition is further fueled by stabilized employment rates, escalating salaries, resurgent economic activity, and the surge in monumental real estate ventures, all of which galvanize demand for real estate financing.
