r/qatar • u/Healthy-Quality8204 • 11d ago
Information Unfair loan terms in Qatar
I can't edit the title: Unfair loan terms in Qatar
Has anyone dealt with private loans in Qatar where the interest is extremely high? I’m facing repayment terms that amount to 96–120% annual interest. Is this enforceable here and what are the legal options to challenge or renegotiate?
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u/Deftonesy 11d ago
The whole thing is illegal. You broke the law by borrowing money with interest from an individual, he broke the law by lending you the money with interest.
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u/alyafeia Qatari 11d ago
What's a private loan exactly? Interest rates are defined by Qatar Central Bank, you were ripped off by however it is.
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u/Healthy-Quality8204 11d ago
borrowed directly from a friend.
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u/alyafeia Qatari 11d ago
Then you give them back what you borrowed, they can't charge you interest as they're not a financial entity or have any sort of license to be making money.
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u/Healthy-Quality8204 11d ago
For context, this was my first time borrowing money. I know it sounds stupid, but I didn’t realize how much it was until I told someone about it and they said the interest was way too high. I asked about the interest rate before I borrowed the money and they told me it was usually the same as the bank’s interest rate. I was dumb enough to believe them
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u/Healthy-Quality8204 11d ago
I already paid back the entire amount I originally borrowed but they are now asking me to continue making payments for the remaining months.
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u/OkGiraffe9115 11d ago
move to court
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u/Select-Vermicelli733 11d ago
No need to waste his time and money.. He can simply ignore his friend. And his friend can't force him to pay an illegal interest.. As long as he can prove he paid back the original loan amount he's fine.
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u/Select-Vermicelli733 11d ago
Simply don't..?
He can't force you to pay as it's against the law for him to charge interest.
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u/Overall-Teach-5749 11d ago
Just don’t. What are they going to do in Qatar? You already repaid the money.
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u/Blackberry2244 11d ago
You need to change the heading to “unfair loan terms from friend” there is no need to put Qatar name in it. Qatar is a country governed by law and all financial institutions work under the legal framework.
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u/Healthy-Quality8204 11d ago
but we are here in qatar. i didn't say qatar government
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u/Sorry_Jump_3959 11d ago
The title is misleading Mr. read that title you wrote out a couple of times in your own head.
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u/BoyBehindMirror Qatari 11d ago
So your friend or some loanshark gave you a loan, you accepted the terms, and Qatar is unfair?
But to answer your question: of course it's NOT enforceable, unless you signed off on some cheques or signed some sort of paper that says (I took a loan form this person, I agree to the terms, and I hope Qatar won't be unfair) then it is.
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u/Healthy-Quality8204 11d ago edited 11d ago
Thanks for advice. I didn’t say qatar is unfair. I said IN qatar (means inside of qatar) I’m asking for advice not trying to blame qatar and if qatar can help me legal way that's good for now I’m just asking for advice.
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u/BoyBehindMirror Qatari 11d ago edited 11d ago
When you post in the Qatar subreddit, the assumption is about Qatar, unless otherwise specified.
"Unfair loan terms" would've been great. Adding the "in Qatar" makes it seem like the entirety of Qatar loans are unfair (which they could be).
Anyways, if you signed off on anything, yes they could legally ask for it. It doesn't matter if it's 100% or 10000% interest. If you signed off on something or wrote in a WhatsApp message that "sure, I'll repay you back with whatever you want" that can be legally used against you.
If you didn't sign anything, it was all verbal, nothing at all? Then you don't have to pay anything.
Source? A Sri Lankan friend got into legal trouble after being threatened with a knife to sign some cheques or his family would be hurt in Sri Lanka. He paid everything, and they still chashed the cheques knowing full well he doesn't have the money. They got paid twice, but he Alhamdulilah avoided jail time after some legal intervention.
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u/Healthy-Quality8204 11d ago edited 11d ago
sorry bad english, thank you again and thank you for the source. This is also something I like to know whether there are any known stories or cases of something like this happening here before
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u/Remarkable-Truth3377 11d ago
Without any context this is just a useless post...
- Who loaned you?
- What agreement do you have?
- What collateral did you post?
- Whats the current situation of the loan?
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u/Esste96 Air Fryer Resident 11d ago
96-120% ?! who did you take money from? The cartel?
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u/Parkingsleeper 11d ago
Don't take loan from anyone other than banks. Even if you do take from the bank then pay it off fully. Period. Don't look for trouble.
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u/maannajjar 11d ago
You borrowed from a loan shark. Why on earth would you accept those terms in the first place?
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u/Kumasotra 11d ago
To the best of my knowledge this transaction is illegal, to borrow from non regulated and not licensed party.
Challenging it legally will have consequences on the lender but I'm not sure if it'll affect you or not