15-year instalment extension plan
Better to waive off all the loans from the citizens of Bahrain.
@r.mandeel
That’s a bit going overboard.
@chickadee1975
It would be interesting to read the detailed version on this story because doubling up the years of instalments is a quick-fix solution but in the long run one’s equity will rise and the poor citizen will end up paying way more than he was entitled to when he acquired the loan, and he will end up in a never-ending cycle of loans. Yes, he might have the instalments reduced and readjusted but that extra money one thinks he is saving will actually influence him to go get another loan which again would only be a win-win situation for the banks.
@i_k_han
This increase will not come without an adjustment to the rates, mostly the compound interest effect. It will cost more to keep the loan for longer. Instead, there should be modifications in how banks charge the interest. If someone wants to clear the loan before time, they are still paying the full amount after two-three years because banks only collect interest in the initial years of the instalment. Is someone looking into this? Banks are always making profit while people have no increase in income.
@silveraneesa
You are so right. I was just having this same discussion with a colleague who was happy with this proposal. I told her it will end up costing her more to service the loan.
@dewaynebowen
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