The Arab African International Bank (AAIB) launched its Value Plus (VP) service, a secured loan package targeting various strata of customers. “It's a bundle of products, each of which serves customers according to the capacity of their monthly payment," AAIB's Retail Manager, Himanshu Shrimali, told the Daily News Egypt. The VP package's philosophy is based on combing savings and deposits to maximise investment returns. Sloganeering Save & Live VP package offers customers the option of keeping their savings invested while catering to their different needs according to their payment capacity. The VP package consists of five different products; Standard Secured Loan, Bullet Secured Loan, 100 percent Secured Auto Loan, 120 percent Loan and the Zero-instalment Loan. The Standard Secured Loan targets a segment of customers who are comfortable paying relatively high monthly instalments, Shrimali explained; it allows customers the option of acquiring up to 97 percent of the value of their Certificates of Deposit (CD) or Timing Deposits (TD) and settle them on the basis of equal monthly instalments. The Bullet Secured Loan targets customers with lower payment capabilities. Customers are able to acquire up to 90 percent of their bullet CDs and only pay interest on monthly basis. The bank then collects the principal of the loan from the customer's CD by the end of the loan's tenor. The 100 percent Secured Auto Loan is designed for customers who are borrowing to purchase automobiles. Unlike the conventional car loan, this product does not entail hefty loan costs and it preserves the customer's ownership of the vehicle, Shrimali explained. Customers can acquire up to a 100 percent of their CD, and pay lower monthly instalments as they're reduced by the monthly interest of the customer's loan. The 120 percent Secured Loan is ideal for purchasing property. It allows customers to borrow up to 120 percent of their CD. “Unlike other kinds of loans, AAIB's customer who is applying for that specific product is not required to provide any sort of documentation or collateral, only their CD,' Shrimali said. The Zero Instalment Loans is a product in which the loan instalment equals the CD's interest rate. Hence the customer does not make any payments. For example, if the customer's CD is worth EGP 100,000 at 10 percent interest rate, the customer can take up to a 56,000 loan over a ten-year period without paying any instalments.
