To: All Licensed Banks Operating in the Sultanate of Oman

After Compliments,

Re: Interest Rate Ceiling on Personal Loans

1. Reference is drawn to Circular BM 1035 dated 31^st March 2008.

2. Taking into consideration the overall domestic and global interest rate scenario and the need to respond to the genuine request of all concerned to reduce the burden of the personal loan borrowers correspondingly, the Central Bank of Oman has decided to reduce the ceiling on interest rate from 8.5% p.a. to 8% p.a. on all new personal loans (including housing loans) extended by banks from 14^th June 2008,

3. All banks shall comply accordingly.

Best regards,