Number of loan defaulters high among Qatari youth
There is an increasing number of Qatari youth serving jail time due to their inability to repay bank loans.
Qatari youth are known to take huge loans from banks and other financial institutions, which they use to indulge in luxury hobbies such as buying expensive cars or travelling abroad. However, many of them are unable to repay loans at the time of recovery, and as a result, face jail-term.
According to a report in The Peninsula, community elders are blaming lending institutions for this trend among youth, demanding a change in their lending rules.
In the same report, Lawyer Abdul Rahman Al Jefairi said a major reason for Qatari youth to be lured by bank loans is to stay ahead of competition. He was quoted saying: “They want to show off and compete with their peers and neighbours. The scenario turns worse for many when they top up loans to finance their marriage and they, thus, get caught in a never-ending vicious debt cycle.”
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