PD-4.1 PD-4.1 Disclosure of current effective rate of interest on consumer loans
PD-4.1.1
The contents of this section are applicable to all FCBs licensed by the Agency.
Display of rates by conspicuous notice
PD-4.1.2
The Agency requires all FCBs to display, by a conspicuous notice, their current effective rate of interest on consumer loans. This requirement does not extend to overdrafts or revolving credit facilities such as credit cards.
PD-4.1.3
'Consumer loans' are defined in CM-8.3.2.
PD-4.1.4
'Conspicuous notice' means a written statement in both Arabic and English languages which is easily visible and legible and is displayed in all FCB premises open to the public.
PD-4.1.5
FCBs are given discretion as to how the current effective rate of interest is expressed as a calculation (e.g. as a '
base rate ' or as a range of rates) as long as the conspicuous notice provides real and meaningful information to the customer.Advertising of consumer loan facilities
PD-4.1.6
Any advertising of consumer loan facilities offered by the banks should specify only effective rates of interest (including all fees and charges) and not flat rates.
PD-4.1.7
Banks are also asked to take special care to ensure that the content of any advertising material does not mislead or deceive the public in any way.
