Repayment of loans
2. Licensed banks may extend the period of repayment of loans/ finances till the retiree reaches the age of 70 years. When extending the period of repayment, the banks must take into account the maximum approved percentage/ limit for postponement provided that should not exceed two premiums per year, so that the postponement of premiums (during periods of Eids) would not lead to the extension of the period of repayment beyond the age of 70 years (for the retiree).
3. In case the licensed banks would not be able to get a repayment of the due balance of the loan/personal finance before the retiree reaches the age of 70 years, the banks may deduct a down payment (free of early payment fees) of not more than 25 percent of the sum of end of service gratuity if the monthly pension is equal to or less than OMR1,500 or 35 percent of the sum of end of service gratuity if the monthly pension is more than OMR1,500. The banks may deduct more than 25 per cent or 35 per cent (respectively), if this is the wish of the retiree provided he/she submits an application to this effect.
Therefore, to help alleviate financial burdens of retirees, the banks must not make an increase over the agreed interest or profit rate. Also, for the sake of transparency, the retiree must be notified beforehand about the terms and conditions and supplied with a copy of the agreed schedule of premiums.”
The Central Bank of Oman is honoured to express thanks and gratitude to His Majesty Sultan Haitham bin Tarik for his Royal directives to consider the financial conditions of public and private sector retirees.
The CBO also values the valuable efforts of all banks in the Sultanate and Oman Banks Association for their continuous cooperation in serving the public interest. The CBO also values the positive role of the Capital Market Authority and the insurance sector for their prompt response and willingness to provide suitable insurance products for such initiatives.
May the Almighty Allah protect His Majesty the Sultan, guard him as a source of inspiration for this dear nation and eternalise on the bounty of prosperity on Oman and all those who live on its land under the wise leadership of His Majesty the Sultan.