Banks in Dubai are now acting up to control losses accumulated due to easy lending policies. In the wake of expats unable to pay their loans, dumping their cars, and fleeing Dubai, banks are raising credit limits for car and home loans.
Arabian Business reports Emirates NBD, the largest bank in the Middle East, has hiked the minimum salary limit for expatriates seeking a mortgage by more than 200 percent and doubled the threshold for locals. Emirates NBD is only considering expatriate customers for a home loan if they earn a minimum of 25,000 dirhams ($6,800) a month, up from a previous limit of 8,000 dirhams. Emiratis must now earn 20,000 dirhams a month, up from 10,000 dirhams.
In November, Lloyds TSB had raised the monthly salary limit for a personal loan from 12,000 dirhams to 25,000 dirhams.
In the same month, HSBC doubled the minimum salary someone must earn to qualify for a mortgage from 10,000 dirhams to 20,000 dirhams.