Saturday 07 January 2023
I wrote – Manal Al-Masry:
The National Bank of Egypt decided to raise the interest rate by 3% on a personal loan with a salary guarantee (for employees in the public and private sectors) on personal loans, starting from last Thursday.
The National Bank’s decision to raise the interest rate on the personal loan came after increasing the return rate on customers’ savings, the latest of which was the introduction of a high-return certificate with a one-year term at 25% interest, as well as raising the interest rate by 2% on its savings accounts and deposits.
And the National Bank’s increase in the interest rate on loans is the first move after the Central Bank’s decision to raise the interest rate by 3% at once at its last meeting in December 2022, so that (corridor) with the Central Bank recorded 16.25% for deposits and 17.25% for lending.
Raising the interest rate on customers’ savings leads to an increase in the interest rate on loans to cover the cost of operating the higher funds of deposits in the bank.
Last Wednesday, Al-Ahly Bank and Egypt surprised customers by offering a high-yield certificate with a term of one year, at an interest rate of 22% annually for the return that is spent monthly, and 25% annually for the annual return, and its purchase starts from the first thousand pounds.
The interest rate on the personal loan reached between 21.5% and 21.75%, depending on the possibility of transferring the customer’s salary individually or collectively (that is, within the Al-Ahly salary service, which pays all salaries to employees in the company in which he works).
The bank approves administrative fees for a personal loan, ranging from 1.5% to 2%, to be deducted once from the total value of the loan obtained.
The personal loan is one of the most important loan programs in the National Bank due to the ease of its procedure and the absence of a requirement to disburse the loan to purchase a specific commodity such as cars or durable goods, as well as the low interest rate compared to the rest of the interest rates.