Fri, Nov 15, 2024 | Jumada al-Awwal 13, 1446 | DXB ktweather icon0°C

UAE: Monthly pension deduction rates may reach 50% for citizens, official says

The minister was responding to a question raised by Hamad Ahmed Al Rahoumi, a member representing Dubai

Published: Tue 14 Jun 2022, 3:43 PM

Top Stories

Monthly deductions from pensions of retired senior UAE citizens might be increased to 50 per cent.

A top government official has told the Federal National Council (FNC) that these deductions can be used for repayment of personal bank loans, if authorities find it necessary.

Muhammad bin Hadi Al Husseini, Minister of State for Financial Affairs on Tuesday confirmed to FNC members that the ministry will study the proposal aimed at facilitating and accelerate the period of their repayment of bank loans.

“The UAE Central Bank is concerned about the issue of non-payment of loans and putting the burden on the customer to repay the loan, especially after reaching a certain age, should be a big priority.”

The minister was responding to a question raised by Hamad Ahmed Al Rahoumi, First Deputy Speaker of the FNC and member representing Dubai about financial loans for senior UAE citizens.

Al Husseini also pointed out the Central Bank issued a decision to remove the maximum age of 65 for non-citizens and 70 for UAE citizens when paying the last installment of the value of a mortgage, in a way that contributes to facilitating the requirements for housing loans for customers of banks and finance companies.

He added that banks and financial institutions are required to carry out their activities in compliance with the regulations and laws of the Central Bank at all times, which include granting loans to customers regardless of the applicant's age and requesting loans and facilities.

“All banks in the country have to conduct their activities in compliance with regulations and mechanisms issued by the UAE Central Bank. There are no conditions or procedures that prevent, prohibit or restrict senior citizens from obtaining any personal loans from banks,” said Al Husseini.

The minister explained that the process of granting loans and financial facilitation is based on commercial foundations based on the extent to which banks accept risks in accordance with their internal policies and procedures and that no specific age requirements attached.

“The Central Bank has taken measures to ensure the service of banks and financial institutions benefit everyone regardless of their age and to provide them with appropriate services at reasonable fees,” said Al Hussein.

System to protect bank customers

According to the minister, on November 25, 2020, the UAE Central Bank issued a consumer protection system in accordance with the best international practices, which aims to create a culture based on respect for age and put obligations on banks to ensure the protection of their customers and to treat them well.

“The system included an article that allows banks to analyse data of their clients on the basis of gender and age in order to measure the level of financial services and use the results in order to improve equality in the financial services provided,” Al Hussein explained.

“In 2021, the Central Bank issued consumer protection standards that constitute a part of the consumer protection system, obligating banks and other financial institutions to put provisions in their rules of conduct to ensure that they carry out their work with integrity and professionalism towards customers, regardless of their religion, gender, age and condition.”

ismail@khaleejtimes.com



Next Story