Banks in the country have expanded the application of the direct debit system, to include loans and personal finance, as well as car finance and credit cards.
According to text messages sent by banks to their customers, the customer can obtain a personal loan without transferring his salary.
Information obtained by "Emirates Today" from bankers in the personal finance departments of national banks showed that the current period is witnessing great competition between banks to buy "debts" and grant new loans, with the entry of the travel and vacation season.
Two conditions for the loan
The banker, Mustafa Al-Saeed, said that banks offer this feature to those who do not want to transfer their monthly salary, provided that the employer to which he belongs is listed on the lists of banks, with a minimum salary of not less than 8000 dirhams.
Al-Saeed added that the "direct debit system" allows the bank to deduct the value of the monthly installment easily and quickly, and it has been in place for years with regard to car financing and credit cards, to finally combine finances and personal loans.
Al-Saeed pointed out that the banks ask for an additional guarantee, represented in the high interest rate on the loan or financing, which is higher than its counterpart if the salary is transferred to the bank.
He explained that the price of finance or interest on personal finance in which the salary is not transferred is currently around 11% decreasing, which is equivalent to 6% fixed, pointing out that it was higher a short time ago, at a rate of up to 18% decreasing.
According to previous statements by the Central Bank of Emirates Today, “Direct Debit” is a safe and appropriate method of payment, and it is designed primarily for periodic payments that are made in fixed or variable amounts, calculated by the service provider in agreement with the customer who signs an authorization for direct debit (Direct Debit). Authority DDA), after which the payments will be collected automatically through the customer’s account referred to in the “Direct Debit” authorization.
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