The Central Bank of the UAE/CBUAE
The new scheme consolidates all loans and introduces a monthly instalment limit of 50 per cent of income, or 30 per cent of pensions, over a duration no longer than four years.
Sunday 17, March 2019 BY KUDAKWASHE MUZORIWA
The Central Bank of the UAE (CBUAE) and UAE Banks Federation in collaboration with national banks have launched the National Loans Scheme, an initiative aimed at easing the burden of debt accumulation for UAE nationals, according local newswire, WAM.
The National Loan Scheme will be applicable for personal loans granted before May 2011 which exceed maximum settlement amounts and periods, eligible loans include auto loans, overdraft facilities and credit card balances but will exclude mortgage loans and loans for shares or deposits.
The central bank said that participating banks will begin accepting applications for the programme from the beginning of April 2019 and the regulator will closely monitor the process to ensure a successful implementation that benefits eligible applicants.
Banks are urged to keep track of settlement terms with regards to the total loan amount and the settlement duration to ensure compliance with the regulations.
Additionally, for loans granted before the introduction of the scheme, banks have been requested to reduce interest rates, avoid extending settlement periods and reject additional credit requests.