Al-Etihad Credit Information Company said it is in talks with several companies, led by real estate departments and municipalities, to join the list of credit information providers in the country for the purpose of adding information on rental obligations, in addition to housing companies. It is concerned with providing home loans to citizens.
The company’s CEO, Marwan Ahmed Lotfy, said, “Currently the number of customers registered with the company, including existing and old customers, individuals and companies, has reached 14 million distributed between 12.7 million individuals and 1.3 million companies.”
In an interview with Emirates News Agency (WAM), Ludfi added that the number of active individuals receiving financial facilities or loans from banks reached more than 3.2 million people, while the number of companies receiving credit facilities from banks exceeded 153,000 companies.
Rent and housing
Ludfi expected some companies’ rental obligations to be added to credit reports early next year: “We are also looking at companies that provide housing loans to citizens in the country, such as the Sheikh Zayed Housing Project, the Mohammed Bin Rashid Housing Authority and the Abu Dhabi Housing Authority and the Sharjah Housing Project.
He stressed the importance of providing credit information from housing authorities as it would simplify the system for calculating the commitment rates in accordance with the Central Bank’s directives. The information appears on credit reports.
bad loans
Several weeks ago, Lutfi revealed that the names of beneficiaries of troubled debt treatment funds were added to appear on their credit reports, helping banks and increasing the central bank’s ability to enforce rules and regulations.
He said: “We have worked with the company in the past with the central bank in relation to funds covering the loans of some citizens,” he explained. “This is unhealthy and burdensome, especially since central bank regulations prevent banks from extending loans to beneficiaries of the support for a four-year period,” reports said.
suppliers
Regarding the companies that provide credit information to Al-Ittihad, Ludfi said: “Initially, banks and financial institutions were the most important target companies, and then we introduced information related to telecommunications companies that provide us with information about accounts. Corporations and individuals, then courts.”
He added: “Electricity and water companies play an important role in providing credit information, and now we have Abu Dhabi and Al Ain Distribution and Al Etihad Water and Power. We are currently in talks with the Dubai Electricity and Water Authority (DEWA). Sharjah Electricity and Water Authority (SEWA), and we look forward to partnering with all relevant parties to develop indicators of availability of financial obligations, as financial obligations of any person or entity are not limited to banks.
Real estate sector
Lutfi indicated that the company will release more specialized indicators in the coming period, including indicators dedicated to the real estate sector, landlords, insurance companies and others.
He said, “Credit reports and assessments are not expensive to provide, as the cost of an assessment for subscribers is less than five dirhams and can reach half a dirham, while the cost of reports starts at 30 dirhams, but goes down to 10 dirhams depending on the amount of reports requested by each party.” .
Regarding the analytical reports provided by the company to the banks operating in the local market, Lutfi pointed out all the major banks, whose costs start from 10 thousand dirhams and reach 200 thousand dirhams, depending on the bank, its customer base and its facilities. Get this service in the country.
Foreign reports
Regarding credit reports from abroad, he pointed out that this is a service launched this year for the company’s subscribers, so the bank can request an external credit report for a customer who has recently resided in the country and wants to get a credit facility.
He explained that the bank needs approval to obtain external credit reports of customers from some countries, pointing out that customers from 10 countries have access to the service: Australia, India, Kenya, South Korea, Mexico, Nigeria and the Philippines. , with the company planning to expand its list to include Spain, Switzerland and the UK in the coming period.
Credit rating
Al-Etihad Credit Information Company provides credit rating and reporting services to individuals and companies. The report contains all credit information in detail, while the credit rating is represented by three numbers, which indicate the degree of probability that the individual or company will fail. It must pay its financial obligations on time within the next 12 months. Distributors can choose between a minimum rating of 300 points and a maximum of 900 points.
• 14 million customers registered with Al-Etihad Credit Bureau.
• The number of personal loan borrowers from government banks reaches 3.2 million customers.
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