Some banks have recently adopted a new strategy what it called ‘credit courtship’ under the title “I want a new client from the government sector employees”, stating that the new strategy grants a loan (one third of it without interest), reports Al- Rai daily quoting familiar sources.
The daily added, some banks have started marketing new funds for individuals, guaranteeing the client a loan of 25 thousand dinars, which is the maximum allowed by the Central Bank of Kuwait in the form of consumer loan According to the sources, the financing offer includes special benefits, the most prominent of which is the calculation of a third of the loan, and sometimes 35 percent of it as a good loan, while calculating the remaining financing ratio at the current interest rate, explaining that the new offers guarantee opportunities to market bank money surpluses, and the bank’s ability to control increases on the retail credit market.
The strategy “I want a new customer” targets customers who have a suitable credit margin, and also those who want to reschedule their loans with other banks. They are the most targeted ones, where the bank can achieve double and sometimes triple interest indirectly, that includes increasing the size of the portfolio, and increasing the market share with a total transfer of customers It is a competitive bank portfolio, in addition to providing strong opportunities to market the bank’s products such as credit cards, housing loans, and car financing.
In practice, customers benefit from this banking competition, by reducing the cost of their loans, whether by reducing the money charged for interest, and by dropping a portion of the profits due for the remaining period of the loan in the event of scheduling
SOURCE : ARABTIMES