Banks have increased their rate because of the prevailing market condition, but it is binding, legal and in accordance with the Central Bank.
But just to give you an idea of the difference between variable and flat rate, which I think was not discussed to you.
Multiply your Principal amount to 9.75interest rate then multiply it to number of years. That's the way a Fixed interest rate is normally computed.
If the tenor or monthly installment is more than 1 year, then definitely your monthly amortization is lower than that of a Fixed Rate.
If you took the loan for 5 years installment with a variable rate, compute it the way a Fixed Rate is calculated and you'll find out that you should have paid the monthly amortization almost equal to that of a Fixed Rate. Because even if they say it's now 12 or 13%, it is still variable, not fixed- applied almost all of the banks in Qatar.
Qatar's loan interest rate is still much lower compared to the interest rate being applied now by other countries.
Banks have increased their rate because of the prevailing market condition, but it is binding, legal and in accordance with the Central Bank.
But just to give you an idea of the difference between variable and flat rate, which I think was not discussed to you.
Multiply your Principal amount to 9.75interest rate then multiply it to number of years. That's the way a Fixed interest rate is normally computed.
If the tenor or monthly installment is more than 1 year, then definitely your monthly amortization is lower than that of a Fixed Rate.
If you took the loan for 5 years installment with a variable rate, compute it the way a Fixed Rate is calculated and you'll find out that you should have paid the monthly amortization almost equal to that of a Fixed Rate. Because even if they say it's now 12 or 13%, it is still variable, not fixed- applied almost all of the banks in Qatar.
Qatar's loan interest rate is still much lower compared to the interest rate being applied now by other countries.