PERSONAL LOAN FROM COMMERCIAL BANK

Does anyone faced the same problem with commercial bank of qatar???

I took a personal loan from Commercial Bank in March 2008 with a variable interest rate of 9.25 %.

They charged me 9.25% for last 8 Months. This month they charged me 12% interest. almost 3% more than the interest agreed .

I called CBQ to know the prevailing interest rate for personal loan. I was told it is 9.75 % . For the employees of corporate clients the interest rate is little less than the prevailing one .

Is this the way a leading professional bank like CBQ works and treats (cheats)its bonafied customers (employees of corporate clients) .

Is there any authority in Qatar ,whom these issues can be addressed.

Regards

MPQATAR.

Comments

anonymous

This is normal and they are allowed to change the interest rate on existing loans as well as new one's. The interst rate they pay to the National Bank. I am used to this from My Home Country and this has been the case in the other Countries I have worked in as well.

shameen.ali

They say its some kinda floating rate whereby the interest charged varies according to the current prevailing market rate. Sure that this wud have not been communicated to u @ the time of applying for the loan & for sure there would be some fine print hidden in the disclaimer notice justifyin this...

injinuity

A friend of mine took a personal loan from HSBC, he took the loan at around 6.99% around a year and a half back, now it is somewhere near the 11% mark, I know another case where it went up from 11 to 14.5% but I cant recall if it was HSBC or Standard Chartered.

When we investigated further, the loan contract clearly stated that the bank had the prerogative to increase the rates and hence we let it be, I think all the banks have this clause built into the contract and so there is really no legal alternative. Now other banks in Qatar are following suit, and i presume its mainly becase the banks are now giving higher rates on deposits than 6 months before, my wife has a deposit with commercialbank and they increased the rates on her deposits, so I guess its about making the books balace, end of the day the bank needs to make money on the loan its giving; I have always found commercialbank to be the best in the market and am an old customer of theirs, you should probably give their call centre a call again to see if you can have some kind of resolution to this.

anonymous

Yes, thats the problem with variable interest, its variable!
You should have taken the fixed type; it will be fixed maybe at 12% throughout the loan duration.

DUFFY

I faced not only this problem with the CBQ regarding the sudden and unnotified increase of their loan interests from 9.75 % to now 13.0 percent.The answer I got " thats the way it is" ! Due to international banking rules any change of interest should be notified in advance (which is unfortunately usual here around that nothing will be notified in advance!..).And by the way, when I took the loan I did not want to have variable rates, but they did not give me another option.
And no, due to many other problems and cases known meanwhile CBQ is by far the bank to be known as the one with the harshest methods to treat their 'clients' whenever a problem occurs. But here its not easy just to change simply the bank as elsewhere.. as we know!

marycatherine

Sorry, but you did have another option - don't take the loan. The rules, regulations and procedures of all banking contracts (whether credit cards, loans, deposit accounts or savings certificates) are given to the customer and the customer signs off on them before the contract can go forward.

Complaining after the fact that the customer did not read the fine print is useless - the onus is on the customer (as the second party to the contract) to actually read and understand what they are agreeing to.

soundsgr8

Banks have increased their rate because of the prevailing market condition, but it is binding, legal and in accordance with the Central Bank.

But just to give you an idea of the difference between variable and flat rate, which I think was not discussed to you.

Multiply your Principal amount to 9.75interest rate then multiply it to number of years. That's the way a Fixed interest rate is normally computed.

If the tenor or monthly installment is more than 1 year, then definitely your monthly amortization is lower than that of a Fixed Rate.

If you took the loan for 5 years installment with a variable rate, compute it the way a Fixed Rate is calculated and you'll find out that you should have paid the monthly amortization almost equal to that of a Fixed Rate. Because even if they say it's now 12 or 13%, it is still variable, not fixed- applied almost all of the banks in Qatar.

Qatar's loan interest rate is still much lower compared to the interest rate being applied now by other countries.

flanostu

if you don't know how interest rates work then perhaps your not fit for a loan.

expatin

if you are taking a loan on a variable rates you might have to pay if the central bank rates goes up....like wise you get a lower rate as the rates go down....all of these details are clearly mentioned in the loan contract you are signing when you get the loan...and you are liable either way

donald_duc168

too much for a person to shoulder too much interest for a loan which he was made to believe it has fixed interest...

baldrick2dogs

Flanostu - LOL!
Donald_duc - "I took a personal loan from Commercial Bank in March 2008 with a variable interest rate of 9.25 %."

He was not made to believe it was fixed as per his own statement above.

As William Shakespeare said "Neither a lender nor a borrower be". (Polonius,to Laertes,'Hamlet'). see http://fobw.tribe.net/thread/beaa4b6d-ce5b-468d-bb66-1236367dfab8 for the full monologue - most of it can be applied to QL and expat life in general!

_MG_9382
Did you Google it first?

ManojMN

In addition to the QR.50.oo charge for Debit Card, Commercial Bank is trying to loot the customers in many different ways.

Are you aware of that if our bank balance in Saving Account is less than QAR. 3,000, CBQ will charge QR.25 per day !
And if you don’t keep minimum of 5,000 in your Current Account with commercial bank, they will charge QR.25 per day.

As an expatriate, we may need money on urgent basis, forced to withdraw the whole, then you will be charged by the bank, even though you are withdrawing your money.

And I’m now suffering pain from my personal loan I’d taken from CBQ.

I have taken a loan of QR 100,000 from Commercial Bank in July 2008 for meeting certain unimportant expenses. The offer and other terms explained by CBQ Agent at the time of granting the loan was very attractive, with an interest rate of 6.99%. I considered this an advantage, although I have to pay an interest of 6.99%.

I now understand thru some reliable source that the bank has unilaterally increased the interest rate to 11. 49% (nearly doubled) effective from ? (no idea since I don’t received any statement of loan accounts till date). Al though as per the contractual documents (copy of which has not been provided to me) or bank’s policy, it has the liberty to increase the interest rate at any time, without ascertaining any reason, but this attitude of suddenly doubling the interest rate without any advance notification or valued reason is rather surprising and not a professional attitude. I took the loan and spent it and planned my reimbursement based on the terms at the time of providing the loan. Now the terms are revised without any option to the customer, which is taking advantage of the situation.

I have not been provided with any statement of loan account or notification regarding the interest increase. I hope it is a courtesy of the Bank or agent to notify its customer if any such condition changes.

I am a family man and have planned the expenses based on my income and loan re-payment. In this financial crisis situation, CBQ is trying to increase profit by looting the customers….

I’ve made a request to them by email, telephone but no favorable action till date.

bubbly1975

any idea on how to transfer bank personal loans..CBQ.
planning on leaving Qatar, pending loan, is it possible to transfer the loan? or have someone guarantee that you'd continue to pay the loan even if u are out of the country? or leave them a forwarding address.. won't run from the debt...

...finding the easy way out...

thank you in advance

marycatherine

All of these charges and changes in interest rates are published by CBQ and provided to the account holder including advance notice either by email or snail mail.

Did you read the contract you signed? Did you check the charges that might be levied? Have you actually visited a branch to discuss these items? Unfortunately, banks here are notorious for ignoring telephone calls and emails.

Signature line > "You can't fix stupid"

MikaylasMom

Bubbly1975, from what I understand, you can not leave the country until your bank loans are paid off. I don't think there is a way around it. Do a search on QL, you will get more info.

Motherhood...The hardest job you'll ever love! : )

mariam-mar

Any kind of loan to any banks increases as years goes on, to ease from these, payment should be increased more than your monthly installments,,,i mean here is pay in advance as you can, give back your loan as early as you can to avoid charges and so on,,,

 

"There's nothing we can do to change the past, if it teaches  you a lesson profit from it then, forget it.
There is no use of crying over spelt milk"

tssoriano

One thing people forget when getting a loan from banks is to read the fine print. I am sure that the person who entice you to get a loan mentioned that the rate will be as what you said and that is fixed for the duration of your payment. What happens most of the time is, when you are asked to sign the contract, the terms on the interest of the loan is changed from fixed to variable and you don't get an explanation about it. And since you have signed a contract stating that clause, then you are bound to it and your only escape is to pay the loan in full to avoid suffering from the increasing interest rate.

Johnson1000

I bought a flat in the Pearl from Qatar Coral developer and took out a mortgage from Commercial Bank. The agreement was such that I do not start payment untill the property is completed, which was meant for completion on June 2009. But the property was delayed for handover by the developer, Qatar Coral, for another three years estimated to be January 2012.

Therefore, the Commercial Bank is chasing me for a payment of interest untill the handover date. When I asked them why, they are saying that they have made payment of the mortgage of 90% on our behalf to Qatar Coral upon the premise that they should have completed construction by June 2009. Therefore, its clear that Qatar Coral is at fault here, and that Commercial Bank should have made the payment upon the level of construction and not all of it. Therefore, instead of chasing Qatar Coral for interest they started chasing me and demanded that I must start payment of interest till the delivery period of January 2012. I see that as being quite unfair. Can anybody advice me what to do.

Johnson1000

I bought a flat in the Pearl from Qatar Coral developer and took out a mortgage from Commercial Bank. The agreement was such that I do not start payment untill the property is completed, which was meant for completion on June 2009. But the property was delayed for handover by the developer, Qatar Coral, for another three years estimated to be January 2012.

Therefore, the Commercial Bank is chasing me for a payment of interest untill the handover date. When I asked them why, they are saying that they have made payment of the mortgage of 90% on our behalf to Qatar Coral upon the premise that they should have completed construction by June 2009. Therefore, its clear that Qatar Coral is at fault here, and that Commercial Bank should have made the payment upon the level of construction and not all of it. Therefore, instead of chasing Qatar Coral for interest they started chasing me and demanded that I must start payment of interest till the delivery period of January 2012. I see that as being quite unfair. Can anybody advice me what to do.

Johnson1000

I bought a flat in the Pearl from Qatar Coral developer and took out a mortgage from Commercial Bank. The agreement was such that I do not start payment untill the property is completed, which was meant for completion on June 2009. But the property was delayed for handover by the developer, Qatar Coral, for another three years estimated to be January 2012.

Therefore, the Commercial Bank is chasing me for a payment of interest untill the handover date. When I asked them why, they are saying that they have made payment of the mortgage of 90% on our behalf to Qatar Coral upon the premise that they should have completed construction by June 2009. Therefore, its clear that Qatar Coral is at fault here, and that Commercial Bank should have made the payment upon the level of construction and not all of it. Therefore, instead of chasing Qatar Coral for interest they started chasing me and demanded that I must start payment of interest till the delivery period of January 2012. I see that as being quite unfair. Can anybody advice me what to do.

Johnson1000

I bought a flat in the Pearl from Qatar Coral developer and took out a mortgage from Commercial Bank. The agreement was such that I do not start payment untill the property is completed, which was meant for completion on June 2009. But the property was delayed for handover by the developer, Qatar Coral, for another three years estimated to be January 2012.

Therefore, the Commercial Bank is chasing me for a payment of interest untill the handover date. When I asked them why, they are saying that they have made payment of the mortgage of 90% on our behalf to Qatar Coral upon the premise that they should have completed construction by June 2009. Therefore, its clear that Qatar Coral is at fault here, and that Commercial Bank should have made the payment upon the level of construction and not all of it. Therefore, instead of chasing Qatar Coral for interest they started chasing me and demanded that I must start payment of interest till the delivery period of January 2012. I see that as being quite unfair. Can anybody advice me what to do.

Johnson1000

I bought a flat in the Pearl from Qatar Coral developer and took out a mortgage from Commercial Bank. The agreement was such that I do not start payment untill the property is completed, which was meant for completion on June 2009. But the property was delayed for handover by the developer, Qatar Coral, for another three years estimated to be January 2012.

Therefore, the Commercial Bank is chasing me for a payment of interest untill the handover date. When I asked them why, they are saying that they have made payment of the mortgage of 90% on our behalf to Qatar Coral upon the premise that they should have completed construction by June 2009. Therefore, its clear that Qatar Coral is at fault here, and that Commercial Bank should have made the payment upon the level of construction and not all of it. Therefore, instead of chasing Qatar Coral for interest they started chasing me and demanded that I must start payment of interest till the delivery period of January 2012. I see that as being quite unfair. Can anybody advice me what to do.

Johnson1000

I bought a flat in the Pearl from Qatar Coral developer and took out a mortgage from Commercial Bank. The agreement was such that I do not start payment untill the property is completed, which was meant for completion on June 2009. But the property was delayed for handover by the developer, Qatar Coral, for another three years estimated to be January 2012.

Therefore, the Commercial Bank is chasing me for a payment of interest untill the handover date. When I asked them why, they are saying that they have made payment of the mortgage of 90% on our behalf to Qatar Coral upon the premise that they should have completed construction by June 2009. Therefore, its clear that Qatar Coral is at fault here, and that Commercial Bank should have made the payment upon the level of construction and not all of it. Therefore, instead of chasing Qatar Coral for interest they started chasing me and demanded that I must start payment of interest till the delivery period of January 2012. I see that as being quite unfair. Can anybody advice me what to do.

Johnson1000

I bought a flat in the Pearl from Qatar Coral developer and took out a mortgage from Commercial Bank. The agreement was such that I do not start payment untill the property is completed, which was meant for completion on June 2009. But the property was delayed for handover by the developer, Qatar Coral, for another three years estimated to be January 2012.

Therefore, the Commercial Bank is chasing me for a payment of interest untill the handover date. When I asked them why, they are saying that they have made payment of the mortgage of 90% on our behalf to Qatar Coral upon the premise that they should have completed construction by June 2009. Therefore, its clear that Qatar Coral is at fault here, and that Commercial Bank should have made the payment upon the level of construction and not all of it. Therefore, instead of chasing Qatar Coral for interest they started chasing me and demanded that I must start payment of interest till the delivery period of January 2012. I see that as being quite unfair. Can anybody advice me what to do.

venky_83

Johnson: Does it state in the contract that repayment starts from the date of completion or does it state repayment from date of completion from June 2009. This is important as the latter means that you have to start the repayment from June 2009 regardless of whether Coral completed or not.

Also, read if there are any other conditions that state the way ahead if there is a delay from Coral side.

Johnson566

Most of the times when apply for a loan they will not inform the customers about the terms and condition and thus they make you in trap.

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