Citizens in the “private” group complain that banks refuse to grant them financing

Citizens working in the private sector complained that banks refused to grant them any type of financing, under the pretext that their companies are not included in the banks’ lists.

They told Emirates Today that although they receive salaries starting from 10,000 dirhams (5,000 from the employer, and 5,000 from the Nafes program), the banks reject their requests.

For their part, two bankers said that the basis for banks’ approval of financing is the value of the salary that the citizen receives, and whether the company is included in the banks’ lists or not. They explained that banks cannot rely on the value of the “Nafes” bonus, or combine it with the salary that the citizen receives from the company in which he works, as it is essentially support for a specific period. However, they proposed setting up a specific mechanism in cooperation between the Union of Banks and the Central Bank that guarantees the provision of Bank facilities.

In detail, citizens working in the private sector said that the banks operating in the country refuse to grant them financing of all kinds, whether it is a personal loan, car financing, home loan, or credit cards. They explained that the reason is that the companies in which they work are not listed (other than Listed) in the banks’ lists, and therefore the employees of these companies cannot obtain financing in accordance with the policy that has been in place in the banking sector for years.

They added to Emirates Today that a large percentage of private sector companies are not included in bank lists, pointing out that although their salaries start at 10,000 dirhams (5,000 from the employer, and 5,000 from Nafis), their applications are rejected.

They reported that even for citizen employees in these companies, for more than two or three years, they have also been deprived of financing a car, despite the citizen’s ability to pay its monthly installment, calling for the necessity of finding a solution to this problem.

They confirmed that there is a desire among citizens to work in the private sector, but dealing with banks always collides with the company not being included in the lists allowed to receive financing.

As a banker, expert Amjad Nasr said, “Private sector companies have begun to attract a large number of citizens after the (Nafis) initiative, and this creates a responsibility on banks to provide for the needs of citizen employees, especially with regard to financing cars, as they are essential in many cases.”

Nasr added: “A specific mechanism can be studied in cooperation between the Union of Banks and the Central Bank to ensure the facilitation of obtaining financing for this category of citizens.”

In turn, a banking official, who preferred to remain anonymous, said, “Private companies can apply to have their names included in bank lists according to the controls and policy of each bank, where the private company’s bank accounts, cash flows, account statements, and other technical matters are reviewed, and if approved, its employees can easily take bank financing.”

He added, “With regard to car financing, banks are usually flexible in granting it and do not require a salary transfer, and do not carefully examine the issue of whether the private company is (listed) or not, but scrutiny and rejection are in the case of personal and real estate loans.”

The official explained: “Banks cannot rely on the value of the (Nafis) bonus, or combine it with the citizen’s salary from the company in which he works, as it is essentially support for a specific period of a certain number of years and according to specific dates. Therefore, the basis for banks’ approval of financing is the value of the salary that the citizen receives and whether the company is included in the banks’ lists or not.”

The official continued: “The situation of citizens can be studied exceptionally, and a specific mechanism can be established that guarantees the provision of banking facilities to them, while at the same time not disrupting the system and policy of the banks, since the latter are based on the instructions and controls of the Central Bank.”

50% of private companies are not listed in banks

Information collected by Emirates Today from five major banks in which the largest percentage of clients are concentrated revealed that about 40 to 50% of private sector companies are not included in bank lists, for several reasons, including a lack of transparency in financial reports, a weak or non-existent credit rating, in addition to the presence of higher risks in the evaluation and the absence of guarantees that reassure the risk departments in banks, in addition to the fact that private companies are family-run. Or personally, which reduces banks’ confidence in their financial system.

• Citizens confirmed that banks rejected their requests, even though salaries start at 10,000 dirhams (5,000 from the employer, and 5,000 from Nafis).

• A banker confirmed that banks cannot rely on the value of the “Nafes” bonus or combine it with the salary, as it is essentially support for a specific period.