Tough times mean residents less likely to extend loans

Dubai: It's a matter of trust. Close friends and relatives are closing the doors on those who seek cash advances, for fear of never being paid back.

Unconventional lending and borrowing among friends and colleagues has become a thing of the past as no one is willing to take the risk, many admit.

"Lending has become a dying habit even among the generous lot. It has almost become extinct," said Roger Steeve, a project manager at an architectural firm. He said he too lately refused to help two of his friends who wanted a cash advance to settle bills.

"It is not that I am a bad guy. The times are bad and no one knows who is going to stay and who not," Steeve justified his decision.

And he is not alone as more and more residents have adopted a "no lending policy" in the wake of the current economic situation.

Ajith Pillai, an electronic engineer has decided not to entertain any requests for financial assistance. "There are many who are in 'cash-crunch' and the amount they ask is in thousands. What is the guarantee that they will pay you back your hard-earned money?" asks Pillai. The Sharjah resident explained that is a natural reaction because his priority is to build on his savings.

Vinu K.M, a resident of Dubai, said it is common among friends to help each other, especially when rent cheques are due. "Personally, I have always sought financial help from my friends when my rent cheque is due. They all help willingly because we support them in return when they are in the same situation."

But the administrative manager said it has become a difficult task to ask anyone for money. "Everyone is cautious about spending. In such situations, I have realised that it is better not to ask than having to take a 'No'. It is an embarrassing situation for both," he said.

A taxi driver who requested anonymity said their tradition of pooling money for colleagues who go home for a holiday has come to an end. "It was a tradition of sorts among us drivers to collect around Dh3,000 from among friends to sponsor a colleague's vacation. And nobody had any qualms as when our turn came to go home, we also received similar assistance.

"Two months ago a few drivers showed reluctance to contribute. Nobody is taking the initiative," said the driver.

The case is similar among many people who live in labour accommodations where chit funds are a popular form of savings. Ananda Raj, a labourer from Andhra Pradesh, said that each month everyone is "scrambling to get their turn to collect the amount."

In times like this, very close friends and close relatives you can rely on. But sometimes you will be discouraged to ask for help before hand, as they will see you coming and close their minds to provide help and say something bad about your situation. If people only put themselves in other people's situations, then maybe they would understand how hard the situation that even oneself cannot accept that he or she needs help financially.
Mhadz
Dubai,UAE
Posted: February 14, 2009, 15:31

I would say a friend in need is friend indeed.
Raj Bhatt
Sharjah,UAE
Posted: February 14, 2009, 14:53

On one hand, it is a matter od 'who is asking for it' and on the other hand, 'How much you could afford to lose?'. So, if someone very close to you or trustworthy and has a good social background can be granted a help. In any case, I agree that you have to save yourself and your future first. You never know what will go on and till when it will go on.
Kaiser Raja
Dubai,UAE
Posted: February 14, 2009, 14:21

10 to 15 years ago I had the habit of lending money to friends and I lost a lot of money. Nowadays nobody is asking money. If anybody asks, I don't know what will my answer be
Ambooken P. Anto
Abu Dhabi,UAE
Posted: February 14, 2009, 12:57

I would lend an affordable amount that to a person whom I can rely on completely. I think we will be rewarded for helping others in these difficult times.
Hadi
Dubai,UAE
Posted: February 14, 2009, 12:46

I would lend some money, depends on how important the reason is.
Carlo Laserna
Dubai,UAE
Posted: February 14, 2009, 12:37

Don't be afraid to help your close friends. Keep something for urgencies, food, bills, and may be to stamp your visa. The rest of the money, use to help your close circles in their bad times. Because it might be you who is in trouble tomorrow. I used to help.
Nasser
Dubai,UAE
Posted: February 14, 2009, 12:07

Now a days only your very close colleague, which you can trust to do something with, otherwise it is not worth it.
Ali
Dubai,Pakistan
Posted: February 14, 2009, 10:53

In bad times we should support each other and be positive of change in situation. We should always believe that there is some reason or connection when he or she comes to u for help.
Pranav
Dubai,UAE
Posted: February 14, 2009, 10:32