Loan repayment terms of pensioners amended

MUSCAT: With the blessings of His Majesty Sultan Haitham Bin Tarik, the Central Bank of Oman on Tuesday launched a programme amending terms for the repayment of loans and personal finances granted to retirees from the public and private sectors.

This came in a statement issued by the Private Office reading as follows:

“With the blessings of His Majesty Sultan Haitham Bin Tarik and, in implementation of Royal directives to consider the financial conditions undergone by public and private sector retirees, the Central Bank of Oman has launched the ‘Programme of Amending Terms for the Repayment of Loans and Personal Finances Granted to Public and Private Sector Retirees’. The programme is launched in cooperation with the banking sector represented by Oman Banks

Association and in coordination with the Capital Market Authority where it pertains to the insurance sector. The programme will be applied to loans and personal and housing finances granted to retired employees according to the following terms:

1. The maximum loan deduction service must not exceed 30 percent of the monthly pension if it is equal to or less than OMR1,500. If it is more than OMR1,500 the maximum ceiling of deduction must be not more than 35 percent . A retiree may agree with the bank about a greater percentage of deduction service provided the percentage must not exceed 50 per cent and 60 per cent, respectively, of the monthly pension in case of personal and housing loans as stated in previous circulars issued with regard to deduction percentages.