A bank in the UAE has launched a campaign encouraging people to take out a loan - by offering customers the chance to win back some of the money they have borrowed.
The draw, run by Emirates Islamic Bank, has three prizes of up to Dhs100,000. The bank offers personal finance loans of up to Dhs3 million for UAE nationals, while expatriates can arrange a borrow up to Dhs1 million.
However, Dubai-based financial adviser Keren Bobker said that she considers the new 'Win back your Personal Finance' campaign "unethical".
Steve Gregory, a managing partner at finance firm Holborn Assets, described the promotion as "interesting".
He said: "It encourages people to take out a loan for things they otherwise would not buy."
With the effects of the dark days of the world's debt crisis still very much in people's minds, some 7DAYS facebook followers were quick to condemn the new initiative.
Emily Myluvs Sayson said: "They are encouraging you to get a loan but if you can't pay the loan due to unavoidable circumstances then they put you in jail."
And Emma 'Pinky' Brain said: "It's exactly this kind of irresponsible lending that gets people into financial trouble!"
But Yohannes Mazeingia, the president of Dubai-based ISDM, a firm that offers debt counselling and debt management, said he thought no one would really take out a loan believing they could win it back. "I don't think anyone would actually do that," he said.
In launching the promotion, Faisal Aqil, Deputy CEO of Consumer Wealth Management at the bank, said: "It is the constant endeavour of Emirates Islamic Bank to be the leading innovator in the market by launching products and services that enhance the lifestyle and convenience of our customers."
© 7Days 2013
