Loan fees in Qatar: what a bank may charge
Updated
Two QCB rules speak about loan fees in Qatar, and they do not say the same thing. The 2011 rule for loans against salary allows no fee at all besides the interest; QCB's older 2010 fee table lists fees of up to 1%.
For loans against salary QCB says banks may not charge any fee or commission besides the interest (or Islamic return). QCB's 2010 fee table lists an admin fee of up to 1%, early repayment up to 1% of the remaining balance, rescheduling QAR 250, a no-liability letter or balance certificate QAR 25 and a card late fee of at most QAR 50.
Not a valid document. Estimate for information only — not financial advice, not an offer of credit and not a bank document. Errors are possible. Only your bank's or finance company's official offer letter, contract and statements are binding.
The 2011 rule: nothing but interest
QCB's instructions on credit against salary (Circular 36 of 2011) say the bank may not collect any fees or commissions on these loans other than the interest or return. A loan against salary is any personal loan repaid from a salary transferred to the bank — a car loan to a salaried borrower included.
The 2010 fee table
| Item | Highest fee in QCB's table |
|---|---|
| Administrative / file-opening fee | 1% of the loan |
| Early repayment | 1% of the remaining balance |
| Increasing a loan | 1% of the added amount |
| Rescheduling a loan | QAR 250 |
| Postponing an instalment | QAR 50 per delay |
| No-liability letter or balance certificate | QAR 25 each |
| Credit card, late payment (not cards against salary) | QAR 50 per delay |
Banks may not charge a fee that is not in QCB's table without QCB's approval, and must post their fees in every branch.
Which rule applies to your loan?
No official page we could read settles how the two rules fit together: the 2011 salary-loan rule is newer and stricter, the 2010 table is still in QCB's instructions. If a bank asks for a fee on a loan against salary, ask it to point to the QCB basis for the fee in writing. Example: on QAR 100,000 still owed, an early-repayment fee is QAR 0 under the 2011 salary-loan rule and at most QAR 1,000 under the 2010 table.
Interest is the main cost
Whatever the fees, the interest on a loan against salary is capped at the QCB lending rate + 1.5% — 6.10% today (our computation from QCB's rule; see QCB rates explained). See the full cost with the personal loan calculator, and what you save by paying off early with the early settlement calculator — it shows both fee rules.
QCB's limits for loans against salary come from its Instructions to Banks (consolidated edition of September 2013); QCB's list of later circulars could not be opened, so a later change is possible — your bank's offer letter is what counts.
Questions people ask
Can a bank in Qatar charge fees on a personal loan?
On loans against salary QCB's 2011 rule says the bank may not charge any fee or commission besides the interest or return. QCB's older 2010 fee table lists fees; no official page settles which applies, so ask the bank for the QCB basis.
Is there an early repayment fee in Qatar?
Under the 2011 salary-loan rule, no fee besides interest. QCB's 2010 fee table lists an early-repayment commission of up to 1% of the remaining balance.
How much does a no-liability letter cost?
QAR 25 for a no-liability letter or balance certificate, in QCB's fee table.
What is the late fee on a credit card?
QCB's fee table lists at most QAR 50 per delay, except for cards issued against salary — for those the 2011 rule allows no fee besides interest.
Can a bank charge a fee that is not in QCB's table?
Not without QCB's approval, and banks must post their fees in every branch.