By Massoud A. Derhally
Personal loans account for about 40 percent of a bank loan portfolio in the sultanate
Commercial banks in Oman cannot deduct more than 50 per cent of the borrowers' salary as part of an equated monthly instalment plan in place for personal loans, and 60 percent for housing loans, the Times of Oman reported, citing the Central Bank of Oman.
Personal loans account for about 40 percent of a bank loan portfolio in the sultanate, estimated at OMR12.5bn (US$32.5bn), the newspaper reported.
In March the central bank reduced the interest rate on new personal loans to 7 percent from 8 percent, the newspaper reported.
This will be a welcome move by the locals, since major part of their monthly salary goes in paying the loan instalments for housing, car, etc. which results in the individual having any money left to meet his/her household expenses.