Deals of the Week: ENBD aims to make personal loans easy

Emirates NBD is hoping to grow its loan book with the launch of three new personal finance products; plus, United Arab Bank has introduced an account that guarantees a monthly payment in case of job loss.

Emirates NBD (ENBD) has relaxed its lending criteria in a bid to boost its loan book with the launch of three new personal loan products, two of which don't require salary transfers.

The country's biggest bank by assets says the move is also aimed at "enhancing" consumer access to finance.

Since the Central Bank introduced new banking regulations last year, consumers have complained that they are having difficulty applying for loans and other forms of credit.

The banking regulator last March limited personal loans to 20 times a person's salary, as well as capped the repayment term to four years to prevent consumers from overleveraging.

Monthly repayments for ENBD's Non-Salary Transfer loan would be made through the issuance of post-dated cheques.

"This option also removes the requirement for borrowers to be employed by a company that is registered on the bank's approved list of employers," it says.

The Loan for Bankers also doesn't require a salary transfer and is available for employees of banks, with repayments again made through post-dated cheques. The third option is the Salary Transfer personal loan, in which the applicant must have a good account history for a minimum of six months, but whose company is not on the bank's approved list of employers.

"Our personal loan book accounts for almost 50 per cent of Emirates NBD's total retail asset book," says Shekhar Krishnamurthy, the head of retail assets and liabilities at ENBD. "With these new variants, we aim to enter new segments in order to increase business and book size through 2012."

The interest rate starts at 6.99 per cent for ENBD's personal loans, while the minimum salary requirement for the Non-Salary Transfer loan is Dh12,000 a month.

For more information, go to www.emiratesnbd.com.

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United Arab Bank (UAB) has introduced a Salary Protector Savings Account that guarantees a monthly payment equal to a customer's last drawn wage for 12 months if they suddenly lose their job.

The Sharjah-based lender says it is the first bank in the Emirates that doesn't set an upper limit on the salary amount.

"Losing one's job is often unexpected and is a traumatic experience not only for the individual, but also for the entire family," says Tom Smith, the executive vice president and group head of retail banking at UAB.

"Thus, our Salary Protector Savings Account provides much needed peace of mind to customers by easing their financial stress and allowing them to focus their efforts on securing their next job."

The bank also launched a high-yield Ultra Savings Account that offers up to 2.5 per cent interest.

Go to www.uab.ae for more information.