01:04 PM
Saturday 11 April 2020
–
I wrote – Manal Al-Masry:
The Bank of Egypt and Al-Ahly Bank of Egypt decided to keep the interest of the new owners’ auto loans unchanged, despite the Central Bank’s decision to cut the interest by 3%, according to customer service officials at both banks.
The central bank had suddenly cut interest rates by the middle of last month, by 3% to the level of 9.25% for deposits, and 10.25% for lending, as part of the state’s plan to reduce the repercussions of the Corona virus.
The two banks have tended to maintain the interest rate on all loans to individuals, including cars, because of the issuance of a savings certificate with a high interest rate of 15%, which is the highest at the level of the banking system, which led them to not reduce the interest on loans because of the high cost of operating funds on deposits, headed by certificates.
The decision of the ALCO Assets and Liabilities Committee on determining the interest rate on loans is subject to the cost of operating the funds with the bank on all the different savings vessels, as well as the volume of liquidity and the competitive prices in each bank.
Al-Ahly and Egypt banks began, during the last week of last month, to put the new certificate with the highest return in Egypt, where the two banks sell the certificate electronically, i.e. through Internet banking or mobile banking, in order to ensure that the two banks do not accumulate in their branches.
Masrawy offers interest rates on new car loans in Al-Ahly and Egypt banks, after the decision to fix the interest rate.
1- Al-Ahly Bank of Egypt:
Interest rate: ranges between 18% to 19% annually, decreasing according to the type of customer’s job.
The value of financing: ranges from 20 thousand pounds to one million pounds as a maximum.
Repayment period: ranges from 1 year to 7 years.
Administrative expenses: ranging from 1.5% to 2%, according to salary transfer.
Age: ranges from 21 to 60 years when the last installment is paid.
Salary: The minimum monthly income is 1500 pounds.
Financing ratio: up to 100% of the total loan.
2- Banque Misr:
The interest rate ranges between: 17% to 18.5%, depending on the type of customer’s job.
The value of the loan: ranges between 15 thousand pounds to 750 thousand pounds as a maximum.
Repayment period: ranges from 1 year to 8 years.
Administrative expenses: 1% of the total loan amount.
Age: ranges from 21 to 65 years when the last installment is paid.
Salary: The minimum monthly income is one thousand pounds for government employees and two thousand pounds for private sector employees.
Financing ratio: 90% of the total car value.
– .
