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  • Additional Public Disclosure for Instalment Financing Facilities

    • BC-3.1.10

      In addition to the requirements under Paragraph BC-3.1.9, licensees must publicly disclose by conspicuous notice for instalment financing facilities:

      (a) The current Annual Percentage Rate (APR) as calculated using the APR methodology in BC-3.1.31. The APR displayed must be calculated based on the following scenarios. In case of consumer finance, amount borrowed is BD10,000 for a 7-year term and for housing facilities, BD100,000 for 25 years;
      (b) The Annual Percentage Rate (APR), must be broken down as follows:
      (i) The annual nominal interest/profit rate payable on the instalment financing;
      (ii) Administration/handling fees;
      (iii) In the case of finance lease contracts/ijara or deferred purchase contracts, any fees for purchasing the asset; and
      (iv) Any other mandatory charges (contingent costs are excluded); and
      (c) The terms and conditions for early repayment, partial or full, of the credit agreement, or for any change in the terms and covenants of the credit agreement, as well as any relevant charges (where permitted) and the way in which these are calculated.
      January 2014

    • BC-3.1.11

      The APR is a standard measure that allows customers to compare total charges for instalment financing facilities on a like-for-like basis. The APR allows the customer to compare the total charge for credit over differing periods (e.g. — two versus three years) or offered by different licensees with differing payment profiles and taking into account the payment of any other fees payable as a condition of the contract, such as administration fees or insurance premiums.

      January 2014

    • BC-3.1.12

      Any advertising through any media means of instalment financing facilities, offered by the licensees must specify only the APR (including all fees and charges) and no other rates, i.e. nominal, base, flat or rates by any other names.

      January 2014

    • BC-3.1.13

      For the purposes of Paragraph BC-3.1.10, the disclosures can be provided as one APR or a range of APRs for licensees that provide instalment financing to different segments and products. A licensee may have different customer segments with different risk profiles, for whom the APR offered on the same product may vary. However, the disclosures must comply with the scenarios outlined in Subparagraph BC-3.1.10 (a).

      January 2014