Introduction

This Circular purports to sum up the Central Bank of Oman's extant instructions on the restrictive scope to be observed by licensed banks on extension of personal loans in Oman.

Coverage of Personal Loans

Personal loans for the purpose of this coverage are those granted to individuals and households for non-business purposes. Such loans will include but not be limited to those for purchase of automobiles, furniture, household appliances and other consumer items besides those for investments in shares and housing. Banks shall treat loans to individuals for medical, hospitalisation, educational and other personal needs too as personal loans. As a matter of general rule, all credit facilities, including credit cards, extended to individuals and households not evidenced and documented to be for business purposes shall be treated as personal loans hereunder. All staff loans are the only exempted category.

Personal loans aimed to be captured hereunder are specific and may be different to what may be reckoned elsewhere in other connotations/ submissions.

Quantitative Ceiling