03:26 PM
Saturday 03 October 2020
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I wrote – Manal Al-Masry:
3 government banks, Al-Ahly, Egypt and Cairo, fixed the interest rate on the personal loan despite the central bank’s reduction in the return on deposit and lending.
The Monetary Policy Committee at the Central Bank decided to cut interest by 0.5% on deposit and lending Thursday before last for the first time in 6 months, after the exceptional interest rate cut of 3% last March as part of precautionary measures to confront the Corona virus.
The tendency of the three largest government banks to slow down in reducing interest on retail bank loans to individuals is due to the earlier signing of a 1% interest cut in the Majlash Alikum initiative that the president announced before the end of last July to stimulate the local product.
The specifications of a personal loan vary from one bank to another, whether in terms of the value of the financing, the interest rate, the repayment period, and the type of client’s job, government, private, or liberal professions.
The bank determines the maximum value of the loan to the customer according to his monthly income and his ability to pay the monthly installments, as well as the loan guarantee with the guarantee of a job or free professions.
Masrawy provides details of the personal (cash) loan at 3 government banks:
National Bank of Egypt:
Interest rate: from 14% to 18% annually, decreasing according to the type of financing program, the guarantee of salary transfer or without transfer, and whether it is assumed that it is a government employee, private employee, or liberal professions.
Loan value: a maximum of 1.5 million pounds, which rises to two million pounds in the case of a commitment to transfer the end of service reward.
Maximum loan repayment period: 12 years.
Client age: ranges between 21 and 60 years as a maximum, and up to 65 years for some jobs.
Monthly salary: A minimum of one thousand pounds.
Administrative expenses: Exemption from the percentage of expenses until the beginning of the next month.
Egypt Bank:
Interest rate: between 15.75 and 19.5%.
Loan value: Up to a maximum of one million pounds.
Repayment period: ranges between 6 months and 10 years as a maximum.
Age: Between 21 and 65 years old when you pay off the last installment of the loan.
The minimum monthly salary: ranges between one thousand pounds (in the event of salary transfer), and two thousand pounds (without salary transfer).
Administrative expenses: Exemption from the percentage of expenses until the beginning of the next month.
Cairo Bank:
Loan value: up to 1.5 million pounds.
Interest rate: between 15% to 19% depending on salary and profession transfer.
Repayment period: up to 7 years.
Age: between 21 to 60 years old.
Monthly Income: 300 EGP a month as a minimum.
Administrative expenses: Exemption from the percentage of expenses until the beginning of the next month.
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