BC-4.2.10

In addition to the requirements under Paragraph BC-4.2.9, retail banks must publicly disclose by conspicuous notice for instalment financing facilities:

(a) The current APR as calculated using the APR methodology in Paragraph BC-4.2.31. 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 APR must be broken down as follows:
(i) The annual nominal profit rate payable on the instalment financing;
(ii) Administration/handling fees;
(iii) In the case of Ijara contracts 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.
Amended: April 2014
Added: October 2012