Loan limits in Qatar: citizens vs residents
Updated
In Qatar, how much you may borrow against your salary, for how long and at what rate is set by the Qatar Central Bank (QCB) — and the limits are different for Qatari citizens and for non-Qatari residents. They apply to any loan against salary, a car loan included.
A Qatari citizen may borrow up to QAR 2,000,000 over at most 6 years; a resident up to QAR 400,000 over at most 4 years — both counting principal and interest together. The rate may be at most the QCB lending rate + 1.5%, which is 6.10% today. All debt payments together: at most 75% of basic salary plus social allowance for a Qatari, 50% of total salary for a resident.
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 limits side by side
| Rule | Qatari citizen | Non-Qatari resident |
|---|---|---|
| Largest loan against salary (principal + interest) | QAR 2,000,000 | QAR 400,000 — up to QAR 1,000,000 only if the excess is covered by a government employee's post-retirement (end-of-service) benefits held by the bank, with a letter from the employer |
| Longest term | 6 years | 4 years |
| Highest rate | QCB lending rate (4.60%) + 1.5% = 6.10% a year, on the reducing balance | |
| All debt payments | 75% of basic salary + social allowance | 50% of total salary |
| Car loan | The limits above | The limits above, and at most 80% of the car's cost |
The amount includes the interest
The QAR 2,000,000 and QAR 400,000 limits are for principal and interest together, not for the amount you receive. A resident borrowing over 4 years at 6.10% can therefore receive at most about QAR 354,144; the rest of the QAR 400,000 is interest. A resident may go above QAR 400,000 only if the excess is covered by a government employee's post-retirement (end-of-service) benefits held by the bank, with a letter from the employer, and never above QAR 1,000,000.
The rate cap
QCB's rule is that the rate on a loan against salary may be at most the QCB lending rate plus 1.5% a year, charged on the reducing balance. With the lending rate at 4.60% that is 6.10% — our computation from QCB's rule and the current lending rate; QCB does not publish the result as a number. When the QCB rate falls, the bank must lower your rate, and it may not raise its margin. More: QCB rates explained.
How much of your salary: what counts
All your monthly debt payments together must stay within 75% of basic salary plus social allowance (Qatari) or 50% of total salary (resident). They include every loan, the credit cards, overdrafts, obligations at other banks (the bank checks the Credit Bureau) and standing orders such as rent. For a Qatari the base is basic salary plus social allowance, not total salary.
Worked example: same salary, two limits
A salary of QAR 20,000 a month, no other debts, the rate at the 6.10% cap and the longest term allowed (for the Qatari, assume the QAR 20,000 is basic salary plus social allowance):
- Qatari citizen, 6 years: up to QAR 15,000 a month may go to debt, which carries a loan of about QAR 902,520. The salary rule is what limits it.
- Resident, 4 years: up to QAR 10,000 a month may go to debt, but the QAR 400,000 limit on principal plus interest stops the loan at about QAR 354,144 (QAR 8,333.33 a month).
Your own numbers: how much can I borrow? · personal loan calculator · car loan calculator.
Credit cards
- Card limit against salary: at most 2× your net total salary.
- Interest: at most 1% a month, plus at most 0.25% a month extra on overdue amounts.
- Your monthly card payments count toward the salary rule like any other debt.
Salary transfer, moving your loan, rescheduling
- Salary transfer: a loan or card against salary needs your salary transferred to the lending bank, or a lien on cash deposits.
- Moving a loan to another bank: only if the new bank takes over everything you owe the old bank, cards included; the old bank gives a full statement and a salary no-objection letter, and the new loan must stay within the QCB limits.
- Rescheduling: QCB's rule (written for loans outstanding when it was issued in 2011) lets a loan paid on time be rescheduled to lower the instalment, but not to raise the amount, extend the term or grant a new loan; today the bank decides.
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
How much can a resident borrow in Qatar?
A non-Qatari resident may borrow up to QAR 400,000 against salary, principal and interest together, over at most 4 years. More is possible only if the excess is covered by a government employee's post-retirement (end-of-service) benefits held by the bank, with a letter from the employer, and never above QAR 1,000,000.
How much can a Qatari citizen borrow?
In Qatar, up to QAR 2,000,000 against salary, principal and interest together, over at most 6 years.
What is the highest interest rate on a personal loan in Qatar?
The QCB lending rate + 1.5% a year on the reducing balance. With the lending rate at 4.60% that is 6.10% — our computation from QCB's rule.
How much of my salary can go to loan payments?
All debt payments together: at most 75% of basic salary plus social allowance for a Qatari, 50% of total salary for a resident. Loans, cards, overdrafts, other banks' obligations and standing orders such as rent all count.
Do the limits apply to car loans?
Yes — in Qatar, a car loan against salary falls under the same limits. For a resident the loan may also be at most 80% of the car's cost.
Can I move my loan to another bank?
Only if the new bank takes over everything you owe the old bank, cards included, with a full statement and salary no-objection from the old bank, and the new loan stays within the QCB limits.