02:33 PM
Saturday, January 21, 2023
I wrote – Manal Al-Masry:
4 banks modified the interest rate on auto loans starting this year, after raising the interest rate on deposits, savings accounts, and savings certificates, following the central bank’s recent decision to increase the interest rate.
The Central Bank had raised the interest rate by 3% at once at the last meeting of the Monetary Policy Committee in 2022 on December 22, to record its deposit rate of 16.25% and lending of 17.25%.
And the decision of the National Bank of Egypt, Cairo, and International Commercial Bank CIB to raise the interest rate increase on loans provided to individuals came to cover the cost of increasing interest on deposits and savings accounts, and after issuing a high-yield certificate for a year with an interest of up to 22.5%, and 25% is spent at the end of the certificate’s maturity.
Banks offer many car loan programs, including a loan for employees, with the employer’s commitment to transfer the salary, monthly installment, or employees according to proof of income.
As well as loans for self-employed persons, owners of commercial and industrial activities, with proof of income, and owners of savings vessels (for Egyptians and foreigners).
In the following lines, Masrawy provides details of car loans in 4 banks, after the decision to increase the interest rate.
National Bank of Egypt
– The interest rate for government employees: it ranges from 21.5% to 24% annually on a decreasing basis, depending on whether the salary is transferred to the customer alone, or whether the salaries of all employees of the company are transferred to the bank or from the self-employed.
Loan value: up to 1.5 million pounds as a maximum, and up to 3 million pounds for business and self-employed owners.
– Number of years to repay the loan: it ranges from 1 to 7 years.
Administrative expenses: ranging from 2% to 3% of the total loan value, deducted once.
Age: from 21 to 60 years.
Egypt Bank
Interest rate: from 17.25% to 20.75%, decreasing annually, depending on the employer.
Loan value: from 15 thousand pounds to 6 million pounds.
Loan repayment years: from 1 to 10 years.
Administrative expenses percentage: 1.25% of the total value of the car.
Financing percentage: up to 90% of the total value of the car.
The monthly income of the client: one thousand pounds as a minimum for government employees, and 2000 pounds for workers in the private sector.
Customer age: from 21 years old until retirement age.
Cairo Bank
Interest rate: from 17.25% to 22% decreasing annually, depending on the company’s classification and the type of client’s job.
Loan value: up to 2 million pounds.
Administrative expenses percentage: 2.5% of the total loan amount.
Repayment period: up to 7 years.
Minimum monthly income: 3 thousand pounds.
Customer age: from 21 to 64 years.
Commercial International Bank
Interest rate: from 16% to 22% annually on a decreasing basis according to the type of client’s job.
Loan value: up to a maximum of one million Egyptian pounds.
Loan repayment years: up to 8 years as a maximum.
The monthly income of the client: 3 thousand pounds minimum.
Administrative expenses percentage: 2% of the total salary.
Financing percentage: up to 100% of the total value of the car.
Customer age: from 21 years to 60 or 65 years, depending on the retirement age.
