To: All Licensed Banks operating in the Sultanate of Oman

After Compliments,

Sub: Vehicle Loans in the Personal Segment

1. Personal loans for purchase of vehicles have been mounting significantly.

2. With a view to bring about improved prudence and moderation, Central Bank of Oman advises the following:

   • i) There shall be a minimum of 20% down-payment of the cost by the borrower.

     ii) Banks shall arrange for insurance on the borrowers covering life and total disability so as to avoid hardship for the successors.

     iii) Comprehensive insurance should not be insisted upon, as a credit term.

     iv) Banks should not issue cheque books for those finding place in the Caution List for a period of two years from the date of inclusion in the List (unless financial capability is reviewed and banks are satisfied). There shall be no new checking account opened by any bank for such persons during this cautionary period of two years.

     v) Banks should issue cheque books only after minimum of three months of opening accounts.