DOHA: Several citizens have called on the authorities to fix an age limit for disbursement of personal loans to curb extravagant spending by Qatari youth on foreign trips in summer.
They urged the Qatar Central Bank (QCB) to impose stricter rules for personal loans to ensure that they are used wisely.
A member of the Central Municipal Council (CMC) has suggested 30 as the age limit, while some other citizens want it to be 25.
“The banks are interested only in profits. They just want to benefit from personal loans. The Qatar Central Bank must impose strict conditions to make it difficult for people less than 30 years to take personal loans,” CMC vice chairman Jassim Al Malki told The Peninsula.
“Qatar is the best country in the Gulf in terms of salaries. People should learn to spend their income wisely,” he added.
He said that the habit of taking personal loans for overseas trips is growing among Qatari youth.
Prominent Qatari psychologist Dr Moza Al Malki said it is a pity that many Qatari youth are relying on personal loans to travel abroad. “Personal loans should be given only for emergencies like treatment or to solve a financial crisis. Giving loans just for enjoyment is not justified,” said Al Malki.
She said the government should not repay unnecessary loans on behalf of the indebted, which will further encourage the practice in the community.
She urged citizens to explore tourism opportunities here instead of travelling abroad all the time. “Every grown up person has the right to apply for a loan. The only solution to address this problem is to raise awareness through the media and encourage people to spend their vacation in Qatar,” said Al Malki.
Several citizens talking to a local Arabic daily recently expressed similar views, while calling for an age limit of 25 for personal loans.
The Qatar National Development Strategy 2011-2016 had disclosed plans to set limits on personal loans based on an individual’s income to address the deepening debt crisis in the country.
According to data given in the strategy report, three quarters of Qatari families were in debt, most of them burdened with loans exceeding QR250,000.
The five-year plan targets to halve the number of Qatari families in debt by 2016.
The Peninsula
