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  • Amendments to Regulation No. 29/2011 Regulation regarding Bank Loans & Other Services Offered to Individual Customers

    N 193/2018 Effective from 25/9/2018

    After greetings,

    Reference to Regulation 29/2011 regarding Bank Loans & Other Services Offered to Individual Customers, its amendments and additional clarifications, and in order to stop the unacceptable practices related to the purchase and transfer of UAE nationals’ loans among banks that increase the burdens of UAE nationals, and after consultation with the banking industry, the Board of Directors of the Central Bank has decided to introduce amendments to the above Regulation, its amendments and additional clarifications.

    We enclose herewith a copy of the Amendments to the Regulation regarding Bank Loans & Other Services Offered to Individual Customers. These amendments are effective from the date of this notice.

    Please comply with these amendments to avoid regulatory actions, in addition to listing your bank’s name on the list of non-cooperative banks in implementing the Government initiatives focusing on resolving the problem of UAE nationals’ loans burden.

    Yours faithfully,

    • Central Bank Board of Directors' Resolution No. 26/3/2018 of Amending Regulation No. 29/2011 - Regulation regarding Bank Loans & Other Services Offered to Individual Customers

      Chairman of the Board,

      Having perused the provisions of Union Law No. (10) of 1980 concerning the Central Bank, the Monetary System and Organization of Banking; and

      Regulation No. 29/2011 - Regulation regarding Bank Loans & Other Services Offered to Individual Customers, its amendments and additional clarifications.

      The Central Bank’s Board of Directors has issued the following resolution:

      • Article One:

        The texts of paragraph (b) of Article (20) of Regulation No. 29/2011 - Regulation regarding Bank Loans & Other Services Offered to Individual Customers shall be replaced with the following texts:

        (Any borrower may transfer his/her loan/financing from any bank or finance company operating in the UAE against paying of an early payment fee not exceeding 1% of the outstanding balance of the loan, or AED 10,000, whichever is less. Another bank or a finance company operating in the UAE may accept the transfer under the following conditions:

        1. For loans granted after the issuance of this Regulation, the requirements of the Regulation must be fully complied with, in particular those relating to the loan or financing amount, the repayment period and monthly deduction.
           
        2. For loans granted prior to the issuance of this Regulation, the profit/interest rate should be reduced and the repayment period or loan/financing balance should not be increased by granting an additional loan or financing to the borrower.)

      • Article Two:

        To cancel the additional clarifications under the numbers (2.1) and (7.2), issued by Notice No. 4501/2011 of 7/7/2011.

      • Article Three:

        This Resolution shall be communicated to whomsoever is concerned for implementation, and shall be published in the Official Gazette in both Arabic and English.