For years, the Dubai Shopping Festival (DSF) has been bringing good cheer to everyone. People from all walks of life have taken home cash rewards, brand-new luxury vehicles, kilos of gold and heavily discounted retail items.
But beyond the mammoth array of bargains, prizes and entertainment, DSF provides an excellent opportunity for ‘finance shopping' as well. Banks are slashing down charges on certain loans and are offering zero to low interest on credit card purchases.
Truth be told, you won't normally find rock-bottom interest rates on borrowings outside DSF as most banks, like any other business, would rather offer the best deals to loyal customers. But apparently, the spending surge witnessed during DSF has prompted several providers to rethink their strategies and take part in the bargain frenzy.
"Customers are already in a shopping mood during DSF, we are just making it easier for them by offering more for their dirham. We are offering bargains when people most need cheaper finance," says one bank spokesperson.
Visitors' share
UAE residents and tourists normally splurge during the festival period to avail themselves of retail discounts. Spending during DSF in 2011 reached Dh15.1 billion, according to figures collated by the Dubai Events and Promotions Establishment (Depe). Of this amount, Dh5.9 billion came from the pockets of regional and international visitors. Consumer spending is expected to increase further this year, especially since passenger traffic at the Dubai International Airport has been strong.
"DSF plays a major role in Dubai's economy benefiting the hospitality, travel and retail sectors. We realised that people look forward to DSF to get genuine discounts and exciting offers. This has always been the case before and after the financial crisis," says Simon Frith, managing director at Al-Futtaim Motors.
Rick Crossman, the UAE head of retail banking and wealth management at HSBC Bank Middle East, observes that people are very keen to spend during the festival period. In January 2011, the bank saw a 25 per cent increase in credit card sales."The DSF and the January season is always a very popular shopping time of the year," he says.
Obviously, you need money to enjoy shopping and if cash flow is tight, there's no need to despair. Whether you're looking to buy the latest gadget, a car or even a house, there are great offers available. Here's a look at the top DSF finance deals that Gulf News has hand-picked for you.
Emirates NBD auto financing and credit card offer
If you're itching to get a brand new car and you're not very particular about your drive, Emirates NBD's DSF promotion is worth looking into. The bank has tied up with Juma Al Majid Group, the authorised distributor of Hyundai in the UAE, to offer customers a flat rate of 2.5 per cent annual financing, if you purchase a car from Hyundai. This special offer allows customers to avail themselves of low interest rates and what's more, you don't have to pay anything for the first 60 days. Additionally, you will get a free two-year service contract — that's plenty of money saved on vehicle upkeep and repairs! The promotion runs across all Emirates NBD branches and Hyundai showrooms until February 5. It is applicable to purchases of new and used vehicles. According to the bank, this offer reflects approximately 30 per cent to 40 per cent discount applied to normal rates, so if you were to get your car purchase financed by a bank outside the festival period, the deal you will end up with will cost you a lot more.
In case you're looking to buy something else, perhaps a new TV set or a washing machine, and you don't have enough cash to spare, the bank has a solution for that, too. The good thing is you don't have to shell out some cash right away because you can use the convenient option of swiping plastic without paying any interest at all. Yes, zero interest. Under Emirates NBD's special offer, credit cardholders can have the option to pay back their credit card debt at zero interest with up to 12 months' instalments. As an added bonus, you will also get a chance to win back what you spend on your credit or debit card if you shop for the full range of electronics and home appliances at Jacky's.
- What you will get: 2.5% on auto financing Zero interest credit card debt Up to Dh20,000 of your spend back.
Najm Easy Payment Plan
If you want to switch to the latest mobile phone, the exclusive DSF offer from Majid Al Futtaim Finance's Najm credit card could be the answer to your prayers. To those who don't know yet, Najm is a shopper's credit card that promises to reward savings of up to 50 per cent on hundreds of products every month.
Only this DSF, the card allows shoppers to enjoy ‘zero per cent interest easy payment plan' for six months on electronic purchases above Dh1,000. So, if you took out your card tomorrow and then bought a home appliance, you would not have to pay a hefty interest on the resulting debt for six months.
The offer is valid until February 5, so you still have time left to grab it. Just a quick reminder. You can obtain the offer if you spend at least Dh1,000 in a single purchase at Carrefour Hypermarkets and Carrefour Webstore only. The offer is not valid in conjunction with other promotions.
- What you will get: 0% interest on electronics on a minimum purchase of Dh1,000.
NBAD Easy Payment Plan
When it comes to easy payment plans, National Bank of Abu Dhabi (NBAD) is definitely top of the pile. The reason being is that, wherever you shop with your credit card this DSF, you can pay off your debt over a period of time with minimum interest rates. Also, there's no minimum amount for a single purchase. Credit cardholders can convert a minimum amount of cumulative Dh1,000 worth of transaction to an instalment plan for three tenors: three, six and 12 months.
So, if you have indulged yourself in a DSF shopping spree and made purchases worth Dh6,000 on your NBAD card, you have the option to pay off the amount on instalment, say over 12 months. The interest charges will vary, depending on how long you're paying back the debt.
If you choose to pay off your debt in three months, you will incur a monthly charge of one per cent. If you settle it on instalment for six months, the interest will be 0.85 per cent and, for 12 months, the rate will be 0.75 per cent per month. These are indeed pretty good rates if you take into consideration that the average retail interest rate on credit card debt is 2.55 per cent!
This offer is also valid until February 5.
- What you will get: Very low monthly interest rate on credit card purchases Low interest rates are applicable to spending at any shop during DSF.
Al Habtoor Motors/Mitsubishi
If you fancy a brand-new Mitsubishi Pajero, Outlander or Lancer, head on over to an Al Habtoor showroom. Aside from getting up to Dh3,000 by way of discounts, you can get your purchase financed with 2.99 interest rate. That's one of the best rates you can get on a car loan these days considering that some banks normally charge 3.5 to 4.25 per cent interest.
Another incentive is that you can get a free five-year warranty. The discount you will get will be in the form of shopping vouchers that you can redeem at Sharaf DG, and will depend on the model you go for. The offer, however, is valid only during DSF.
- What you will get: Auto financing from 2.99 per cent Free 5-year warranty Dh3,000 in shopping vouchers
Abu Dhabi Commercial Bank car loan
The bank is also offering attractive car loans for as low as 2.99 per cent on new cars and 4.5 per cent on used vehicles. Finance up to Dh500,000 can be obtained and is payable up to 60 months. You will get up to 80 per cent of the purchase financed by the bank. Other benefits include ‘one signature' application, insurance finance options, quick approvals and simple documentation.
Bear in mind that this special offer is valid until January 31 only and excludes vehicles sold at select dealerships. It is also valid if you call your sales officer directly. So in case your car loan is initially referred to the bank by the dealers, then the normal rates would apply.
HSBC Sale 2012
The bank has a wide range of DSF financial deals on personal loans, home loans, car loans, account opening or credit card spending.Most of the offers are available to existing and new customers and some of the freebies include a lifetime waiver of annual fees on credit cards and discount vouchers worth up to Dh25,000.
You can try obtaining a personal loan for up to Dh750,000 — but we're not saying you have to splurge all of it at the shopping mall. You may decide to use a huge chunk of it on a long-planned big-ticket purchase. The good news is that the interest rate starts from 5.99 per cent per annum. That's actually a steal if you look at the rates in the market today which range between 6.5 per cent and14 per cent.
Another perk is that customers will get their loan processed free of charge and take home a Dh200 gift voucher and an Entertainer booklet. Taking all of these into account, it makes it an extremely well-packaged and attractive offer for any customer looking for some financing.
If you're currently on the lookout for an apartment to own in Dubai, there is a bargain to be had. HSBC's conventional or Amanah home finance is up for grabs from rates of 4.25 per year. It is considerably low compared to what the bank would normally offer outside the sale period which is 5.49 per cent for 60 per cent loan-to-value (LTV) ratio and 5.99 per cent for 80 per cent LTV. Valuations are currently very attractive and the bank says such an offer provides a good alternative to customers who want to buy versus renting the property.
Car buyers can benefit from highly competitive rates starting from 2.49 per cent per annum requiring no salary transfer, with an attractive balloon payment option.
Credit cardholders who maintain the annual minimum spend will also get a lifetime waiver of their annual fees, while the first 500 customers to open a Premier account and the first 500 to open an Advance account will receive a cash credit of Dh3,000 and Dh2,000 into their accounts, respectively.
The offers are valid for most of the DSF period, from January 11 to February 29. Already, they have proved popular among banking customers, according to Rick Crossman, UAE head of retail banking and wealth management at HSBC Bank Middle East.
When the bank launched the promotion last year, it recorded an increase of 25 per cent in credit card sales, 99 per cent more insurance policies, 26 per cent increase in investment sales, 62 per cent increase in personal loans, 410 per cent more mortgages, 11 per cent more HSBC Premier current accounts and 330 per cent more vehicle loans compared to the same period a year ago.
- What you will get: Attractive interest rates on personal loan, car loan and home loanDiscount vouchers worth Dh25,000Dh2,000 to Dh3,000 cash creditLifetime waiver on credit card annual feesWaiver on personal loan processing fee
Toyota: special offers
For car buyers who have cash to spare, it would be worth looking at Al-Futtaim Motors' DSF offer. Depending on the model of the vehicle you are purchasing, you can save between Dh3,000 and Dh20,000.
The exclusive Toyota distributor is offering four different Toyota models — Yaris, Corolla, Aurion and Rav4 on special DSF prices respectively at Dh49,000, Dh55,000, Dh89,000 and Dh99,000.
Customers also get a chance to win a limited edition Yaris simply by passing by the special display at the Festival Promenade in Dubai Festival City.
The distributor is anticipating a great response to the promotion as people are very keen on taking advantage of the various festival offers.
"Following our DSF promotion on four models, a boost in sales is clearly evident. So far the festival has had a very positive impact on our inventory," Simon Frith, managing director at Al-Futtaim Motors, toldGulf News.
