20 Loans and advances

	2021	2020
	AED’000	AED’000
Commercial loans
Commercial overdraft	374,312	403,369
Trust Receipts	22,574	23,649
Bills and discounts	34,747	37,352
Mezzanine finance	12,103	11,934
Advances against documents under LC	–	337
Auto loan	783	1,677
Clean facility	1,180	1,180
Other commercial advances	1,572,717	1,572,215
	————————-	————————-
	2,018,416	2,051,713
	————————-	————————-
Retail finance
Car loans	3,078	3,076
Executive Finance	102,771	163,136
Staff loans	5,342	4,082
Credit card advances and settlement plans	240,642	264,665
Sulfah- National Personnel Loan	67,182	2,109
Payday Overdraft	34,324	35,817
SME loans	21,092	21,751
Others	969	1,056
	—–———————-	————————-
	475,400	495,692
	————————-	————————-
Gross loans and advances	2,493,816	2,547,405
Less: Allowance for impairment	(411,551)	(379,052)
	————————-	————————-
Loans and advances	2,082,265	2,168,353
	=============	=============

The movement in the allowance for impairment during the period/year is as follows:

	2021	2020
	AED’000	AED’000
At 1 January	379,052	416,170
Impairment charges for the year	52,892	72,273
Reversal of no longer required impairment charges	(8,309)	–
Amount written off	(12,084)	(109,391)
	————————-	————————-
Balance at 31 December	411,551 =======	379,052 =======

The allowance for impairment includes a specific provision of AED 362.6 million (2020 AED 325.1 million) for stage 3 loans of the Group.

In determining the recoverability of loans and advances, the Group considers any change in the credit quality of the loans and advances measured at amortised cost from the date credit was initially granted up to the end of the reporting period. The concentration of credit risk is limited due to the fact that the customer base is large and unrelated.