Personal loans rise 2.5% in 12 months

Personal loans extended by banks in the UAE went up by 2.5 per cent in the 12-month period ended January 31, 2010, according to official data.

Personal loans at the end of January this year stood at Dh212.3 billion, up from Dh207.2bn a year ago, according to Central Bank statistics. "[Banks have] seen enormous liquidity in the short term due to various initiatives, including the Central Bank facility," said Sanjay Uppal, CFO of Emirates NBD.

"The system is still looking for liquidity on a longer tenor. The underwriting criteria over the last 12 months has been quite stringent," he added. "It is difficult to look at short-term numbers and comment on the trend," he said, when asked if a 2.5 per cent growth in personal loans was sufficient for a high-growth economy of the UAE.

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