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Sat 14 May 2011 10:36 AM

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HSBC relaxes lending criteria for UAE customers

Bank halves minimum salary requirements to obtain credit cards and personal loans

HSBC relaxes lending criteria for UAE customers

HSBC has made it easier for customers in the UAE to obtain credit cards, personal loans and mortgage by relaxing its lending criteria.

It said it was halving the minimum salary requirement to obtain credit cards to AED7,500, adding that a salary transfer was not mandatory.

For personal loans, the minimum salary requirement has also been reduced from AED15,000 to AED7,500, the bank said in a statement.

It also said it was increasing its loans to value measurement on mortgages from 75 percent to 80 percent, while the minimum salary requirement was now AED15,000.

Rick Crossman, head of Personal Financial Services, HSBC UAE, said: "The economic outlook for the UAE has been improving, along with the credit environment. While we remain a prudent lender, HSBC is committed to its customers, and understands that access to financial services needs to be convenient and affordable."

He added: "Our revised lending criteria opens these products to a larger number of customers, however it is important to note that customers will be evaluated individually and on a case-by-case basis.

"These changes are also fully in line with recent rulings from the UAE Central Bank regarding consumer lending in the Emirates," he said.

Earlier this month, Emirates NBD said that banks must play a key role in reinvigorating the UAE's real estate sector by offering better deals on home loans.

The country's biggest bank said it was time for banks to take advantage of the "huge potential for growth in home financing".

Saif Al Mansoori, deputy head, group marketing, Emirates NBD, said in a statement: "There is huge potential for growth in home financing, and we believe it is vital for banks to play an important role in re-energising this sector."

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vivek kataria 8 years ago

i have had a very bad experience dealing with HSBC and their internet banking is not at all secure i lost my money twice and no compensation from the bank. so just by reducing the salary criteria they cant expect the customers to come to them. they should first serve the extisting customers well.

Chris 8 years ago

It is clear that HSBC is entering the area of risk again as it did a few years ago, by offering credit and cards to those who can not aford to take credit. The bank might enhance its profitability by looking after existing customers by providing better benefits instead of diminshing benefits. Taking away the Old Status benefits such as free international transfer once per month, and providing better exchange rates, may have customers using the fee earning facilities again. This bank does not look after existing customers (nor do most in the Gulf) and it is taking knee jerk reactions to prop up its saging profitability.

Mohamed A. 8 years ago

This is a serious matter/concern for other customers too. Therefore, could any one from the bank, pls give their opinion on this point as we are aware that by way of very stringent terms and conditions spelt out in the documnetation/agreements with the customers, the bank would perhaps protecting their interest as explained by Vivek and ultimately the customer's have to suffer?

Thanks.

Asha 8 years ago

Recent 'change of heart" at HSBC ' One is reminded of a scene in a George Bernard Shaw play.

An upper-class Englishman is driving along a meandering country lane and is waylaid by a bandit who menacingly demands his money. The victim reacts “But I don’t think we’ve been introduced.” The highwayman nervously mumbles, “I’m a brigand; I earn my living by robbing from the rich,” and is flabbergasted when his intended victim responds, “What a coincidence! I am an English gentleman; I earn my living by robbing from the poor.”

Red Snappa 8 years ago

Another round of people running up toxic credit card debts, as the song goes, "when will they ever learn" and what pray is the credit limit for an individual earning AED 7,500 per month. I assume if you're an expat, now on a reduced two year residence and work visa, not very much.

However, with the cost of living rocketing on everything from utilities to groceries other than rents, which mercifully will continue to fall for another couple of years perhaps, then we may have to return to a life lived on plastic out of necessity!

Muhammad 8 years ago

I'm in the process of moving from HSBC to another (local) bank.
I've been with them for 5 years and last week was the final straw, I go the reception desk where I'm told to take a seat and I'll be seen shortly. So I watch for the next 20 minutes - the receptionist disappears, several "Customer Service" representatives are walking around/chatting to one another/texting. Someone spots me sitting and tells another person to check on me, but they're all "too busy". Finally another receptionist appears, I get to see rep - it just so happens he was the one who's been busy texting for the past 15 minutes. I told them I'd been waiting and he flatly tells me "We're busy". The absolute cheek. So, I told him "Yes, I can see you're busy - that's why I'm transferring my account!"

Dubeye 8 years ago

Well done! I did this with HSBC several years ago. Good to see that they have maintained thier standards.

Nothappy 8 years ago

HSBC UAE are quite simply the worst bank I have ever dealt with - recently due to a mistake of theirs my car repayment was AED200 short. This resulted in 16 phone calls from their collections department demanding I went and paid the AED200. Rude inefficient and quite simply a terrible bank

disturbed of dubai 8 years ago

I would like to agree with Nothappy however I find that other Banks are equally as cavalier and disinterested in their customers. I recently had a cheque eaten up by one of the NBD machines and no receipt given. On eventually contacting their wonderfully mis-named "Customer Service" unit and being advised that my call was of course important to them; I was eventually told I would have to visit their branch office the next day as they were incapable of doing anything due to the concerned account being a Joint Account! On visiting the branch office the next day, I was advised that the concerned staff had finished their duty at 2.30 and no-one was able to help yet again. However I was reassured my cheque would be somewhere safe in the vault and I should visit again tomorrow...

vivek kataria 8 years ago

tTl today i dont have any reply from HSBC on the status of my funds i need to take this further could any one advice me how to take my case further