K-amps

Hi Guys: Would appreciate some input from you experts.

I'd like to buy a New Patrol and will probably need to take out a loan for part of the amount.

What I'd like to do is pay it off quick (1-2 yrs). So I'd like a loan where there is no penalty on prepaying, and

#2: That I can drive to Dubai/SA/Bahrain whenever I want without hunting down the Bank for an NOC.

Someone told me if I take a personal loan (instead of a car loan) at a slightly higher interest rate, then in the Car's registration it says "Cash" so it will be like the Car is paid off when I exit the Qatari Immigration and they hopefully won't hassle me for an NOC.

Is this possible? Or will they also ask if I have any other loans outstanding? What is the best option?

Thanks!
K-amps

shah

I don't think there is any bank loan or car loan in this part of the world where you can avoid the prepayment amount. It is usually 2-3% of the remaining loan amount.

Secondly, if you take car loan through a finance company the car is mainly on your name, so there should be no problem in crossing borders. At-least I have never experienced it crossing Oman/UAE border on my car.

K-amps

Thank You Shah: Have you lived in Doha specifically and driven out of Qatar to SA/Bahrain/UAE?

britexpat76

With a car loan the bank name is also on the registration and you will need permission to get it out the country, With a personal loan you can do whatever you want including selling it without having to pay the bank loan off 1st.

I dont know of any loan here where if you settle early you do not get a penalty, I know CBQ charge 1% of what is owed.

K-amps

Thanks 76. With that out of the way.... I need to figure out how to reduce the prepayment penalty which for a car like this could be a month's salary.

rowell

Could always buy a car more within your means without borrowing, always a penalty to borrowing, they have to make their money.

K-amps

Respect your view on this, but completely different discussion. And I might even consider it, but I need to do my homework on other options as well.

scrubbedexpat141

Would it be 1% of the remaining, outstanding amount? Or the original lump? Assuming the latter there is surely some simple maths to do working out the cost of interest vs the cost of that lump.

What if you just overpaid by 1500 a month (for example) and so it naturally comes to an end early, what would they charge then?

britexpat76

I settled a car loan this morning and for QR37000 they charged Qr150 penalty. That said here there is no rebate on the interest like at home.

scrubbedexpat141

Fair enough. I need to ring HSBC to find out how to overpay on mine, can't seem to do it online so must have to ring and do it every month.

K-amps

What sort of collateral do they seek for personal loans? Apart from Salary cert. ?

britexpat76

Personal loans just salary cert and letter from company. Motor Loan they want 20% deposit usually + the above.

K-amps

Spoke to a customer service person @ QNB.

They claimed on a personal loan, there is no pre-payment penalty (at least in my case).

Rate = 3.45%
Insurance on loan = 1.3%
Total charge 4.75% calculated every month.

* This is 0.3% more expensive than a Car loan.
** The insurance is to assure the loan, not the car, The car insurance is separate.

Since it is personal loan, no NOC needed, it will be in my name... can drive anywhere without asking "permission". Can Prepay off early as needed.