Most holders in the UAE are not aware of the features of their credit cards
Analysts of Compareit4me Group conducted a survey among UAE residents who use banking services. According to the results, 63% of the respondents do not know the interest rate offered by their credit cards.
The United Arab Emirates has a fairly developed credit and debit card business. There are more than 5.9 million in total in circulation, and card issuance costs are increasing annually. Despite the high turnover, users are not quite responsible for the use of credit cards, although they are a form of financial debt that requires a sensible attitude.
According to experts, such a high percentage of cardholders who are not aware of the interest rate on them is worrying for specialists. Moreover, 28% of respondents do not understand that an overdue credit card payment in the future will affect their ability to get a loan or a mortgage. The latter loan option is quite popular in the Emirates, especially among non-residents. The purchase of housing here is primarily due to a desire to save money. Rental property in the UAE for a year is on average 6-10% of the cost, so it is better to buy a property than to rent it.
The local real estate market offers a variety of options – from studios of 25 square meters to huge villas. No wonder many foreigners and citizens of the Emirates tend to buy housing, especially since it can always be rented and have additional income.
However, it is easier for locals to apply for a loan than non-residents. Not all banks work with the latter. In addition, foreigners are often rejected by financial institutions when applying for a mortgage. The main condition for obtaining a mortgage is a resident visa. If not, the bank will not take into account the business in the UAE, or work in a multinational company. In addition, some financial institutions may make concessions, but only for the citizens of certain countries, such as the UK, India, or Arab states.
In addition, local law restricts the regions from the purchase of real estate by foreigners. They can buy objects only in Dubai. As for mortgages, it can only be done for a specific list of properties, which each bank draws up on its own. In objects that are under construction, foreigners can not buy housing.
If the buyer has a resident visa, before the bank agrees to grant credit, he carefully checks the solvency of the client. Business owners must provide an audit report for 2 or more years. Employees must provide a 6-month payroll statement and a bank account statement.