1.0 Introduction
Mr. Ali’s financial condition is deteriorating due to the increased amount of outstanding from personal finances. He has to pay the student loan of Omani Riyal 5200. In order to manage the student loan, he also has to regulate the extra expenditures in terms of credit card services (Shaban, et al., 2016). His brother and parents also have an overdue amount present against his account. In order to manage all the areas, the main chance is to select the loan products in Oman which can consolidate the debt in single forms and help Mr. Ali to have an advantage over the use of personal finance.
Mr. Ali has shown a desire to sort out the problems for finances and select a loan product that can reduce the deficiencies of credit on the minimum amount of repayments (Okibo & Makanga, 2014). This will be a positive approach for the future because not only the debts will be managed in a single loan product but more options will be viable from the new salary of Mr. Ali.
2.0 Suggestion for three different loan products
The first loan product for Mr. Ali is provided by Ahilbank of Oman. This is an attractive portion for Mr. Ali because the minimum salary limit is only 300 OMR. This is much lower than the gross figures of Ali. The flat rate offered in this loan product is 4.6%. This means that about 4.6 percent will be charged for each transaction for the loan. This will have a slight effect on the financial condition of Mr. Ali as the most important part of this offer is no salary transfer is required for the loan procedure (Farruggio & Uhde, 2015). This will generate extra cash for him as the student loan will be covered and the credit card outstanding will be leveled with the help of small repayment amounts. The interest rates are also lower as compared to the present debts for Mr. Ali.
The second loan product is the offer made by Bank Muscat for Omani Nationals. This provides a relaxed guarantor requirement for the loan bearer. The minimum salary limit for this product is also under the financial range of Mr. Ali as the bank requires only 1200OMR for the initial process of the loan. Mr. Ali can also use this package as it has an increased tenor which can consolidate all the debt in a single area (Ramaswami & Arunachalam, 2016). The online banking facility will keep track of all financial transactions and regulate credit card debts ineffective way.
The third Loan product is the Oman Arab bank loan which has an initial value of 325 OMR. This will also be feasible for Mr. Ali as a small amount of salary will be used for the loan process (Buchanan, 2016). This will not only full fill the requirements of a student loan but also regulated the credit car and domestic outstanding on Mr. Ali as it is a complete financing solution for all the needs of Ali, this will plan the debts in an organized way required by the individual (Buchanan, 2016).
3.0 Details OF Loan Products in the form of Table
| Sr No | Loan Product | Minimum Salary | Flat Rate | Description |
| 1 | Ahil Bank | 300OMR | 4.6% | This loan product provides cash when required. The main highlight is fulling the desired finance dreams with the help of Ahil Bank’s personal loan strategy. It has exciting schemes where interest rates are less and there are easier repayment options. |
| 2 | Bank Muscat | 1200 | 4.3 | This loan product also provides a higher amount of finance as compared to low-interest rates. The main advantage is the packages and relaxed guarantor requirements for loan bearers. The offer for Online banking is an excellent facility for Mr. Ali. |
| 3 | Oman Arab Bank | 325 | 4.5 | It is a complete financing solution for loans and credit card outstanding. This will be applied to Omani Nationals and provide easy modes of payment. |
4.0 Comparison of Products
The three different loan products have variations in salary levels which make the offered the loan to Mr. Ali more productive. The first product from Ahil Bank has the distinctive feature of low salary which can be easily adjusted from a flat rate of the loan. There are also easy repayments offers that can increase the debt consolidation for Mr. Ali (Buchanan, 2016). He can use this product to simplify the outstanding for personal loans and credit card services. The service of Bank Muscat is different in the sense that the salary specified is higher than Ahil Bank. It is 1200OMR for them individually. Mr. Ali will have slight hesitation for this product but the mode of finance is also higher as compared to the previous number (Ramaswami & Arunachalam, 2016). The Oman Arab bank loan is also a suitable choice as the salary levels are in the 325 OMR range. This will provide an exciting offer to Mr. Ali for debt management and credit sources.
5.0 Analysis of Mr. Ali’s attitude
Mr. Ali is not planning for the credit generation services. The debts should be taken when there is an absolute requirement for money (Farruggio & Uhde, 2015). The place where Ali lives is also expensive as about 104OMR is spent on the living allowance in the shared accommodation. If the mode of accommodation is in sharing then it should reduce the living allowance of the individual. His life can become more difficult if there is no check and balance on expenditure (Farruggio & Uhde, 2015).
Ali’s life can become miserable if he keeps on delaying the outstanding amounts for later time periods. This will not only increase the financial pressure but also increase the interest rate for a person. The use of credit cards over an extreme limit will increase the financial crisis for a person because credit card works on bank security (Ramaswami & Arunachalam, 2016). If there is no money present in bank accounts then the bank will add the credit used by an individual. These will add up to become a large figure which in the end affects the financial status of Mr. Ali (Shaban, et al., 2016).
If Ali continues to work in low-paid jobs his debts won’t consolidate and credit card outstanding will keep on increasing to a higher limit. This will affect his future where financial insecurity will take hold of his relations (Buchanan, 2016). Ali’s attitude towards their family members is also a negative part which can reduce the stability of finance in the future (Ramaswami & Arunachalam, 2016). Ali needs to rethink the consolidation of dents and try to control the increasing debt for each life requirement.
6.0 Conclusion
This report was designed to provide three different loan products to Mr. Ali whose financial position is not stable. The main purpose of loan products was to provide a better plan for the future in fixing the outstanding dues on the person. It was found that three different suggestion suits the individual Ali should be more active in solving the problems related to credit and finance.
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