Just two weeks after it was reported that the UAE Central Bank was planning to cap credit-card interest rates at 18 per cent per annum, the Abu Dhabi-based Finance House has launched a new card that it says offers the country's lowest rate.
The commercial and retail financial company says its Titanium credit card has an interest rate of 1.66 per cent per month, or 19.92 per cent a year.
Credit-card interest rates in the UAE rank among the highest in the world, averaging anywhere between 27 per cent to 36 per cent a year.
"We are leading the way and offering the lowest interest rates in the market by launching this unique product, whereby we have decided to go back to the basics of banking," says Mohammed Wassim Khayata, the group chief operating officer at Finance House.
"We believe that this product will encourage financial responsibility by setting new low levels of interest."
Mr Khayata says the card will be interest free for the first three months and there is no membership fee for the first year. Cardholders will also be able to invest in gold through the Titanium card, which offers up to a 3 per cent payment bonus with an option to keep this saving either in gold grams or bonus points equivalent to dirhams.
Other benefits include free supplementary cards, free silver membership for AAA roadside assistance with FH Credit Shield Insurance, free lounge access to a selected number of airports and discounts on dining and purchase transactions.
The Titanium credit card also offers car insurance through Insurance House.
"This product is another major milestone, which will exceed the expectations of our valued customers," Mr Khayata says.
For more information, go to www.financehouse.ae.
Emirates NBD (ENBD), the largest bank in the UAE in terms of assets, has teamed up with Gargash Enterprises, the authorised dealer of Mercedes-Benz vehicles in the UAE, to offer customers car loans at reduced rates for select models of the luxury brand.
Until February 29, customers can take out car loans with a flat rate of 3.25 per cent interest, or about 6.02 per cent at the reducing rate, if they buy selected Mercedes-Benz C-Class and S-Class models.
A complimentary service at 15,000 kilometres is included in the deal. Other benefits include preferred motor insurance rates, free doorstep annual registration renewal services, a free credit card for one year, 24-hour roadside assistance and a free Salik card.
The promotion was launched as part of a joint sponsorship by Mercedes-Benz and ENBD of the Omega Dubai Desert Classic Men's Golf Tournament, which was won by Spain's Rafael Cabrera-Bello last Sunday.
Go to www.emiratesnb.com for more information.