Abu Dhabi - Arabstoday
Persons borrowing from banks can now transfer their loan to another bank for a Dh10,000 fee under a new rule announced by the Central Bank. The rule followed last year’s enforcement of a new personal lending law which set the maximum loan at 20 times the applicant’s monthly salary. “The Central Bank allowed debtors to transfer their loans to another bank or finance company for an interest rate of one per cent of the remaining loan or Dh10,000, whichever is less,” Emirat Alyoum daily said. It said the new rule was included in a circular sent by the Central Bank to all banks and finance firms in the UAE this week. The paper said the personal loan law, which was enforced in mid 2011, did not include the transfer rule, adding that this has resulted in many debtors being unable to transfer their loan as it exceeded the ceiling. “The new rule allows any bank or finance firm to accept the transferred loan even if it exceeds the ceiling set by the Central Bank in the personal lending law.