The Housing and Development Bank (HDB) announced centralising its retail credit services, including auto loans and credit cards. The process will take place gradually throughout the year.
HDB Chairperson Hassan Ghanem said a trial operation started in November 2019. All safety measures and application steps were ensured to be sound, noting that its application on the bank’s branch network will begin soon.
It comes within the bank’s plan and vision for restructuring and improving its services.
He explained that centralising car loans has been successful in supporting this sector, as the bank’s car loan portfolio reached EGP 100m within two months, January and February.
Ghanem stressed that deciding on the client’s credit eligibility for car loans takes no more than 12 hours from the time he fills the application and submits required documents.
He added that the bank offers about 10 car-buying funding programmes to fit all segments of society, starting with a 10% down payment and competitive interests.
Moreover, Waleed Matar, managing director of retail banking and branches at the HDB, said the aim of the centralisation step is to save time and effort of the bank’s branches, which would improve the level of service and reduce the time needed for banking transactions.
Noteworthy, the Central Bank of Egypt has recently increased the debt-to-income ratio for car loans to 50% instead of 35%, in light of the improvement of economic indicators and the increasing gross domestic product.