I have a loan with an annual interest rate of 39.99 per cent. I took the loan out last year and have 39 months left to pay on the 48-month tenure. I have been a good payer for almost a year, but I missed this month’s payment because of a family emergency back home in the Philippines where I had to pay for an MRI. The lender is now threatening me with dialogue such as, ‘you know what will happen and the consequence that you face, right?’ I have told them I will pay the amount next month but they are still threatening me. My monthly repayment is Dh2,026 and I have an outstanding balance of Dh43,191. I earn Dh4,500 working in administration in Dubai and my monthly expenses are Dh1,800 for food, Dh500 for remittances, Dh150 for utilities, Dh50 for transport, Dh200 for groceries and Dh500 for my wedding preparations. I have not been charged any late payment fees yet. I am planning to make up the payment at the start of next month when my salary comes in. Despite me telling them this, they are still threatening me and have even mentioned legal action if I do not pay up. What do you suggest? EE, Dubai
Debt panellist 1: Shaker Zainal, head of retail banking at CBI bank
When you only miss one monthly instalment on your personal loan, banks typically charge a late payment fee and then you have to pay the missed monthly instalment before the next due date or both instalments together on the next due date.
You should try to clear the overdue payment now and also ask the bank for a deferment of one month. This gives you one month’s payment holiday and you can carry on paying regularly from the next due date. You have established a good track record by regularly paying your previous instalments on time, and you have a job, so your bank is likely to accommodate your request.
You may also want to double check the correct outstanding amount to ensure your information is accurate, because in your message you have indicated that your monthly instalment amounts to Dh2,026 and when you multiply this by 48 months, the total amount would be Dh97,248. From this, if you subtract the nine payments that you have paid already (Dh18,234), then your total outstanding should be Dh79,014 and not Dh43,191 as you have stated.
I also note that you have stated an annual interest rate of 39.9 per cent for a personal loan, which is too high compared to the current market rates in the UAE, so you might want to double-check this information as well. Finally, you might need to cut down your expenses, as I noticed that the sum of your monthly expenses, excluding your monthly instalment, is Dh3,200. This leaves you with less than what is required to pay back your loan.
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Debt panellist 2: Keren Bobker, an independent financial adviser with Holborn Assets
An interest rate of 39.99 per cent a year is shockingly high. I am aware that some fairly well-known lenders will apply an interest rate at this level, but in my view, this is excessive. Interest rates for personal loans vary depending on the specific circumstances of the individual and if someone is considered a higher risk, the rate will increase but this really is far too high.
Mainstream banks will follow up if a payment is missed but not generally in this manner. If you are being spoken to in this way, after missing just one payment, the lender is not acting appropriately and you can register a complaint again them, if they are aggressive or rude, with the Central Bank of the UAE. That said, it is still your responsibility to repay what you borrowed in a timely manner. You signed an agreement with this lender and you do not have the right to make repayments when you choose.
Your stated expenses and the loan repayment exceed your income so I am not surprised you have a problem. You have not said why you took on a loan with such a high rate of interest, though I assume you had previous financial difficulties. Your income is Dh4,500 but your outgoings are Dh5,226. Your loan repayments are within Central Bank limits at 45 per cent of total income but as your total outgoings are higher than your income you must cut back for this situation to be sustainable.
Depending on your credit record you may be able to refinance at a lower interest rate, which would reduce your expenses. Check your credit report with the Al Etihad Credit Bureau before investigating further; the cost varies between Dh60 and Dh150 plus VAT depending on the type of report you request.
If you are unable to refinance then cut back, with the marriage fund the obvious first choice. You cannot save for a wedding if you are building up personal debt. Once you cut out the marriage savings, you need to reduce your expenses by a further Dh226 each month. I appreciate this is tight but you cannot continue in a position where you need to pay out more than you earn. If you fail to make the loan repayments and default by three months, the lender can register a police case and that can lead to imprisonment in a worst-case scenario. Far better to tackle the situation now before the consequences become really serious.
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Debt Panellist 3: Ambareen Musa, founder and chief executive of Souqalmal.com
Calls from bank-appointed collection agencies can be very stressful, especially given the intimidation tactics and borderline threats commonly used by many of these agents. However, you must stick to your side of the story and offer the most you can manage given your financial circumstances. If you're sure you will be able to make up for the missed instalment next month, you must bear late payment charges for the amount you skipped. Check how much these charges amount to, to ensure you are not in for a rude shock.
If it was only a matter of one month when your finances seemed tighter than usual, you could have enquired about getting a payment holiday from the lender. This is a penalty-free break in regular installments, usually not more than a two to three month tenure. This isn't the norm at most banks, but it's still worth checking.
However the missed installment is also a red flag signaling that you've taken on more debt than you can actually afford to repay. You're also finding it difficult to keep up with your repayments because of the incredibly high interest rate on your loan. An unsecured personal loan at an interest rate of almost 40 per cent seems like the absolute last resort in financial assistance. Is there any way you can settle this loan earlier? How about tapping into any old assets or savings, or even getting your close family and friends to help you out with an interest-free loan? The heavy interest will simply keep draining your savings for the remainder of your loan tenure, which is another three years.
You should also consider asking your employer for a raise or possibly switching jobs in the near future. Since the majority of personal loans in the UAE have a minimum monthly salary requirement starting from Dh5,000, an equivalent or higher salary could allow you to opt for a salary transfer personal loan at a significantly lower rate than what you are borrowing at currently.
The Debt Panel is a weekly column to help readers tackle their debts more effectively. If you have a question for the panel, write to pf@thenational.ae
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
Abu Dhabi GP weekend schedule
Friday
First practice, 1pm
Second practice, 5pm
Saturday
Final practice, 2pm
Qualifying, 5pm
Sunday
Etihad Airways Abu Dhabi Grand Prix (55 laps), 5.10pm
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
Mountain%20Boy
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
North Pole stats
Distance covered: 160km
Temperature: -40°C
Weight of equipment: 45kg
Altitude (metres above sea level): 0
Terrain: Ice rock
South Pole stats
Distance covered: 130km
Temperature: -50°C
Weight of equipment: 50kg
Altitude (metres above sea level): 3,300
Terrain: Flat ice
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
US%20federal%20gun%20reform%20since%20Sandy%20Hook
%3Cp%3E-%20April%2017%2C%202013%3A%20A%20bipartisan-drafted%20bill%20to%20expand%20background%20checks%20and%20ban%20assault%20weapons%20fails%20in%20the%20Senate.%3C%2Fp%3E%0A%3Cp%3E-%20July%202015%3A%20Bill%20to%20require%20background%20checks%20for%20all%20gun%20sales%20is%20introduced%20in%20House%20of%20Representatives.%20It%20is%20not%20brought%20to%20a%20vote.%3C%2Fp%3E%0A%3Cp%3E-%20June%2012%2C%202016%3A%20Orlando%20shooting.%20Barack%20Obama%20calls%20on%20Congress%20to%20renew%20law%20prohibiting%20sale%20of%20assault-style%20weapons%20and%20high-capacity%20magazines.%3C%2Fp%3E%0A%3Cp%3E-%20October%201%2C%202017%3A%20Las%20Vegas%20shooting.%20US%20lawmakers%20call%20for%20banning%20bump-fire%20stocks%2C%20and%20some%20renew%20call%20for%20assault%20weapons%20ban.%3C%2Fp%3E%0A%3Cp%3E-%20February%2014%2C%202018%3A%20Seventeen%20pupils%20are%20killed%20and%2017%20are%20wounded%20during%20a%20mass%20shooting%20in%20Parkland%2C%20Florida.%3C%2Fp%3E%0A%3Cp%3E-%20December%2018%2C%202018%3A%20Donald%20Trump%20announces%20a%20ban%20on%20bump-fire%20stocks.%3C%2Fp%3E%0A%3Cp%3E-%20August%202019%3A%20US%20House%20passes%20law%20expanding%20background%20checks.%20It%20is%20not%20brought%20to%20a%20vote%20in%20the%20Senate.%3C%2Fp%3E%0A%3Cp%3E-%20April%2011%2C%202022%3A%20Joe%20Biden%20announces%20measures%20to%20crack%20down%20on%20hard-to-trace%20'ghost%20guns'.%3C%2Fp%3E%0A%3Cp%3E-%20May%2024%2C%202022%3A%20Nineteen%20children%20and%20two%20teachers%20are%20killed%20at%20an%20elementary%20school%20in%20Uvalde%2C%20Texas.%3C%2Fp%3E%0A%3Cp%3E-%20June%2025%2C%202022%3A%20Joe%20Biden%20signs%20into%20law%20the%20first%20federal%20gun-control%20bill%20in%20decades.%3C%2Fp%3E%0A
How to join and use Abu Dhabi’s public libraries
• There are six libraries in Abu Dhabi emirate run by the Department of Culture and Tourism, including one in Al Ain and Al Dhafra.
• Libraries are free to visit and visitors can consult books, use online resources and study there. Most are open from 8am to 8pm on weekdays, closed on Fridays and have variable hours on Saturdays, except for Qasr Al Watan which is open from 10am to 8pm every day.
• In order to borrow books, visitors must join the service by providing a passport photograph, Emirates ID and a refundable deposit of Dh400. Members can borrow five books for three weeks, all of which are renewable up to two times online.
• If users do not wish to pay the fee, they can still use the library’s electronic resources for free by simply registering on the website. Once registered, a username and password is provided, allowing remote access.
• For more information visit the library network's website.
The%20specs
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
The Bio
Amal likes watching Japanese animation movies and Manga - her favourite is The Ancient Magus Bride
She is the eldest of 11 children, and has four brothers and six sisters.
Her dream is to meet with all of her friends online from around the world who supported her work throughout the years
Her favourite meal is pizza and stuffed vine leaves
She ams to improve her English and learn Japanese, which many animated programmes originate in
Huddersfield Town permanent signings:
- Steve Mounie (striker): signed from Montpellier for £11 million
- Tom Ince (winger): signed from Derby County for £7.7m
- Aaron Mooy (midfielder): signed from Manchester City for £7.7m
- Laurent Depoitre (striker): signed from Porto for £3.4m
- Scott Malone (defender): signed from Fulham for £3.3m
- Zanka (defender): signed from Copenhagen for £2.3m
- Elias Kachunga (winger): signed for Ingolstadt for £1.1m
- Danny WIlliams (midfielder): signed from Reading on a free transfer
