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Tue 15 May 2012 12:01 PM

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Oman central bank issues personal loan limit directive

Personal loans account for about 40 percent of a bank loan portfolio in the sultanate

Oman central bank issues personal loan limit directive

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.

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Bili 7 years ago

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.