Easy loans spoiling Qatari youth
Easy access to bank loans is spoiling an increasing number of employed Qatari youth as they tend to splurge huge sums on luxury and indulge in criminal waste of money.
Buying expensive cars and holidaying in dream destinations are a passion among many a youth, a large number of whom take huge loans they find hard to repay.
Strict about recovery, lending institutions like banks and financial services companies eventually go after the defaulters, many of whom land in jail. But parents come to the rescue of many and save them from going to prison. There also have been cases where charitable bodies have rescued loan defaulters.
Local Arabic daily Al Raya reported on Sunday that a common woe Qatari women face is the scourge of taking loans among their men, mostly the youth.
“There are many women whose son or husband is saddled with a huge loan and, sadly, that loan has been taken for no productive use,” the daily said.
“When Qatari women gather in their majlises (living rooms) they mostly talk of how they have been suffering just because their son or husband has taken a loan and is unable to repay.”
Already, many loan defaulters are spending time in prison, while there are others who have been given a warning by banks and financial services companies to repay or face the music.
Then, there are those defaulters who have been rescued by their parents, said the daily. The youths mainly take loans to buy luxury cars and go on dream holidays.
Community elders say much of the blame for the loan scourge should go to banks and other lending institutions like finance companies as they provide easy credit.
“Banks should consult the families of loan seekers if they are younger people,” Issa Al Sulaiti told the daily. “Lending rules must change.”
Lawyer Abdul Rahman Al Jefairi said the tendency towards oneupmanship is catching up among Qatari youth. They want to show off and compete with their peers and neighbours.
“So buying an expensive car worth 300,000 to 400,000 riyals and going on dream vacations are common among most employed youth,” said Al Jefairi, a former member of the Central Municipal Council (CMC).
The scenario turns worse for many when they top up loans to finance their marriage and they, thus, get caught in a never-ending vicious debt cycle, said Al Jefairi. [The Peninsula]
It is all a matter of how a person earns money. Any person who has toil and sweat to earn a Riyal, will think twice on spending it and will give more attention to the saving side. However, when banknotes get available just across the counter, then they get spent the same way -- easy come; easy go.
not just qataris...a significant chunk of the doha populace has fallen prey to the credit lifestyle...one especially must not make assumptions about someone's financial position based on their car...people who live one paycheck to the next drive around in top end cars...just to keep up with the Joneses. Our company staff was recently offered '10 times their salary' loans and every single one of them signed up...weird...
one side Easy loans spoiling Qatari youth, and in other hand "difficulties in getting loan" spoil the expatriates who needs loan for a real reason,
We should strive hard to live out of your own pocket if you 'r employed. Bankers charge you a mountain once you 'r taken in by their greedy manager's relationship with you , don't enter any bank building instead use ATMs .............. Wed, 22.10.2014, 10.00 hrs
The parents should be blamed for not educating their children properly.
I agree, moral and social values from parents at early age is the key.
I agree, moral and social values from parents at early age is the key.
why would lending firms/banks to be blamed? its a business.
Community elders say much of the blame for the loan scourge should go to banks and other lending institutions like finance companies as they provide easy credit.
partly right.
what about the parents teaching their children? what about bringing up kids, instilling all the moral and social values in them right from childhood? don't these parents too need to be blamed? all starts from the family.