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  • Credit Agreements

    • BC-4.3.4

      For the purpose of this Section, the following definitions apply:

      (a) Credit agreement – Means all instalment financing agreements and lease agreements, as well as credit cards, overdraft, revolving and other types of credit offered to retail customers;
      (b) Customer – Means both the debtor and the guarantor (if any) and/or any potential debtor or guarantor;
      (c) Conspicuous notice – Means a written statement in both Arabic and English languages which is easily visible and legible and displayed in all retail banks' premises open to the public (head offices and branches), and via means such as websites, newspapers and other press notices;
      (d) Nominal annual rate – Means the interest rate charged to the customer, calculated by dividing the amount of the total interest by the amount of the funds provided to the customer and excluding any other charges, the results of which is divided by the number of years of the term of the credit agreement;
      (e) Outstanding credit amount – Means the amount outstanding under a credit agreement representing the amount of funds provided to the customer and any other charges that are included as part of the principal amount to be repaid by the customer over the duration of the agreement less any repayment made related to the principal amount at a specified date;
      (f) Principal – Means the amount of credit received plus any other charges, the total of which is subject to interest; and
      (g) Retail customers – Means a natural person.
      Added: October 2012

    • BC-4.3.3

      A retail bank must make available, at their premises, information leaflets containing information on the key products and services in respect of all credit agreements including:

      (a) The Annual Percentage Rate (APR) as defined in Paragraph BC-4.3.10, for instalment financing facilities only; and
      (b) The annual interest rate on credit facilities (as referred to in Paragraph BC-4.3.14), commission, fees, one-off charges, expenses on behalf of third parties, exchange rates applied and any other charges.
      Amended: October 2012
      Amended: July 2012
      Amended: April 2011
      October 07