10:00 pm
Tuesday 26 April 2022
Books – Manal Al-Masry:
Banks are promoting personal loans (cash loan) to customers during this period, especially following the interest rate cost burden has recently increased, affected by the Central Bank’s decision.
Before the end of last month, the banks adjusted the interest rate on personal loan programs known as the (cash) loan to raise it between 1% to 3% according to the policy of each bank for the first time in 5 years, in line with the recent Central Bank decision.
On March 21, 2022, the Central Bank decided in an extraordinary meeting of the Monetary Policy Committee to raise the interest rate by 1% for the first time in 5 years, to become 9.25% for deposits and 10.25% for lending.
It seems that the banks will turn, during the coming period, to more interest hikes on personal loans once more, in light of the continued rise in the inflation rate, affected by the increase in commodity prices, especially most of them imported at high cost due to supply chain disruptions and the negative consequences of the Russian-Ukrainian war on the global economy.
The cash loan offered to individuals, whether employees in the government, the private sector or the liberal professions, is characterized by flexibility in its terms and obtaining it in cash without being restricted to purchasing a specific commodity and obligating the customer to submit a price offer.
Masrawy provides details of personal loans in 5 most popular banks, following the decision to raise the interest rate last month.
Ahli Bank
Interest rate: from 17% to 19.5% annually, decreasing.
Loan value: up to 1.5 million pounds to 3 million pounds, depending on the type of the client’s job and the possibility of salary transfer.
Loan repayment period: from one year to 12 years.
– Age of the customer: from 21 years to 60 years when paying the last installment of the customer.
Minimum monthly income: 1500 pounds.
Administrative expenses: ranging from 2% of the total loan value over the loan repayment period of less than 7 years, and 3% over 7 years.
Egypt Bank
– Interest rate: ranging from 16.85% annually to 20.5% annually, decreasing according to the type of program, salaries or free professions.
Loan amount: up to a maximum of 1.5 million pounds.
Repayment period: up to 10 years.
Age: from 21 to 60 years old.
Salary: From one thousand pounds for a government employee to two thousand pounds for a private sector employee, as a minimum.
Administrative expenses: 1.25% of the total salary will be deducted once from the loan.
Cairo Bank
Interest rate: from 14.5% to 20.5%, depending on the type of client’s job.
Loan value: up to 3 million pounds.
Loan repayment period: from 6 months to 12 years.
– Customer age: from 21 years to 60 years when the last installment of the loan is paid.
Minimum monthly income: 5,000 pounds.
Administrative expenses: 2% will be deducted once from the total loan amount.
Bank of Alexandria
Loan value: from 5,000 pounds to a maximum of 3 million pounds.
Loan disbursement period: from 6 months to 12 years.
Interest rate: ranging from 14.5% to 21.5% annually, decreasing.
– Customer age: from 21 years to 65 years when the last installment of the loan is paid.
Minimum monthly income: 1,000 pounds as a minimum.
Administrative expenses: 2% will be deducted once from the total loan amount.
EGYBANK (EG)
Loan value: from 20 thousand pounds to a maximum of 3 million pounds.
Loan disbursement period: from 6 months to 10 years.
Interest rate: It is determined according to the type of customer and the classification of the company in which he works.
– Customer age: from 21 years to 65 years when the last installment of the loan is paid.
Minimum monthly income: 2500 pounds.
Administrative expenses: from 1.25% to 2.5% of the total loan value.
