1          Purpose

1.1       The Customer shall utilize the Loan for the purposes of his/her personal use and consumption.

1.2       OAB may without being obliged to verify the use and application of the Loan, monitor or verify the use or application of the Loan by the Customer. Use of the Loan for any purpose other than the purposes described in Clause 3.1 shall constitute an Event of Default/ Default in Payment or default of payment of debt.

2          Termination before grant

2.1       OAB may, by notice in writing to the Customer, terminate this Agreement before the Grant Date or, at its sole discretion, delay grant of the Loan in case of any a material and adverse change in the Customer’s circumstances since the date of this Agreement; or OAB becoming aware of any information or financial details set out in the Personal Loan Application being inaccurate or misleading.

3          Conditions Precedent

3.1       Save as OAB may otherwise agree, the Customer may not request OAB to deposit the loan amount unless OAB has confirmed to the Customer that it has received all of the documents and other evidence and satisfied all conditions requested by OAB and has found the same to be in form and substance satisfactory to it including the Security Documents.

3.2       If the conditions precedent is not satisfied by the Customer pursuant to Clause 5.1 within [x] days from the date of this Agreement and before the grant and drawdown of the Loan amount by the Customer, this Agreement shall stand cancelled and have no legal effect unless the Tenor of this Agreement is extended by OAB.

3.3       If OAB grants the Loan amount to the Customer and it is drawdown by the Customer and at the same time the Customer does not fulfil the conditions precedent and does not submit the guarantee or Security Documents, it shall constitute an Event of Default/ Default in Payment.

4          Utilization of the loan

Subject to satisfaction of the condition’s precedent referred to in Clause 5, the Loan shall be advanced by OAB to the Customer in its account no [[FULLAccountNumber]] maintained with OAB in one amount on the Grant Date.

5          Interest

5.1       Interest shall be payable on the Loan at the rate of [[InterestRate]]% per annum.

5.2       The interest payable on the Loan shall be computed on Monthly basis on the principal amount of the Loan outstanding from time to time and shall be paid on each Loan instalment payment date.

5.3       It is expressly agreed that the rate of interest may be varied by OAB in its discretion according to the circumstances and reasons that change the market and economic situation that require such change at any time and that any such variation shall be effective from the date of notice thereof to the Customer or announcement thereof on website of OAB, whichever shall be earlier. Any such variation in the rate of interest shall vary the amount of the instalments to be paid by the Customer or change in the Tenor of the Loan.

5.4       OAB may, at its sole discretion, vary the amount:

(a)        to reflect a variation in the interest rate pursuant to this Clause 7;

(b)        to take into account any additional sums that become due to OAB pursuant to this Agreement; and

(c)        to ensure that the Personal Loan Debt is repaid no later than the Final Repayment Date.

6          Payment Deferment During Eid Periods

6.1       Subject to the Central Bank of Oman’s directives and OAB’s internal policy, the Customer may request a deferment of one monthly instalment during the month of Eid Al Fitr and/or Eid Al Adha. Approval of such deferment shall be at the sole discretion of OAB and may require the Customer’s written request and, where applicable, the Customer employer’s written consent.

6.2       Approved deferments will not incur penalties or affect the credit history of the Customer, but interest shall continue to accrue during the deferment period. The loan maturity date shall be extended accordingly.

7          Debt Burden Ratio (DBR) Compliance

7.1       The Customer acknowledges that OAB has assessed the Customer’s eligibility for this loan in accordance with the Debt Burden Ratio (DBR) limit as prescribed by the Central Bank of Oman. The Borrower confirms that, at the time of signing this Agreement, their total monthly repayment obligations do not exceed the applicable DBR threshold set by the CBO.

7.2       The Customer further undertakes to notify OAB in writing in case of any material change in financial obligations that may affect the DBR status.

7.3       OAB reserves the right to accelerate repayment (while maintaining the DBR) if the Customer’s salary increases in the future.

8          Repayment

10.1 The Customer shall repay the Loan by equal monthly instalments of Riyals Omani, together with accrued interest.

10.2 Notwithstanding any other condition of this Agreement, the Personal Loan amount must be repaid in full by or on the Final Repayment Date or upon demand. OAB may in its discretion and without any obligation to do so, upon request from the Customer extend the payment period and/or the Final Repayment Date on such terms and conditions as may be mutually agreed.

10.3 OAB may, at its sole discretion, vary any instalment due date in respect of the Loan to any other date if the instalment due date occurs on or during any official holidays.

10.4 If at any time OAB receives less than the full amount then due and payable under this Agreement, OAB may apply the amount received for the purposes of the repayment of the Loan as OAB solely determines notwithstanding any instruction of the Customer to the contrary.

9          Prepayment

11.1 The Customer shall, give OAB at least seven days’ prior notice, if he/she requests to pay the whole or any part of the Loan after obtaining the OAB’s approval thereof.

11.2 The Customer acknowledges that any insurance proceeds paid or payable in respect of any insurance policy maintained pursuant to this Agreement shall be applied towards repayment of the Personal Loan Debt.

11.3 Any partial or full prepayment made under this Agreement, shall be made together with an early prepayment fee of [1]% of the amount prepaid. No claim of such fee shall be made if that prepayment of the Loan is the result of the death of the Customer; and OAB is informed promptly of the death of the Customer with the production of a certified copy of the death certificate; and provided that neither of the following events has occurred prior to any such death (unless they have been waived by OAB or remedied by the Customer):

(i)         the Customer has breached any term of this Agreement or of any Security Document; or

(ii)        any information given in support of the application for the Loan, or given while this Agreement is in force, and having a negative effect on OAB’s decision to grant the Loan or continue to granting the Loan to the Customer, is inaccurate.

10        Insurance

12.1 The Customer or OAB may arrange life, and/or certified total permanent disability (“CTPD”) insurance cover (life insurance and the CTPD together the “Insurance Cover”), with an insurance company selected by OAB, for the Customer for the Tenor of a Loan, under which OAB shall be the sole loss payee in the insurance policy. If the Insurance Cover is arranged by OAB and not by the Customer, and OAB pays the insurance premium on behalf of the Customer, the Customer shall immediately without delay make payment of such insurance premium to OAB. Notwithstanding the aforementioned, Customer hereby authorizes OAB to debit the Customer’s account towards payment of any premium of Insurance Cover and expenses, fees, costs etc. that it has paid.

12.2 If the Customer requests for an increase in the Loan, the Customer shall procure fresh Insurance Cover in respect of the increased Loan, in which case Clause shall apply to the payment of any premiums in relation thereto. 

12.3 If the Customer is not eligible for the Insurance Cover arranged by OAB, OAB may require the Customer to separately obtain and maintain the Insurance Cover in the Customer’s own name for the Tenor of the Loan with OAB specified as the beneficiary. The policy for Insurance Cover shall in the least cover the amount of the Loan together with interest, all commissions, charges, costs and expenses including legal expenses and lawyers’ fees. The Customer shall provide OAB with the original policy for the Insurance Cover at the time when such Insurance Cover is put in place with evidence that premium for such policy has been paid. In the event of an extension in the Tenor or the Final Repayment Date, the Customer shall ensure that the policy for the Insurance Cover is renewed for such extended period.

12.4 The Customer shall remain responsible for completing and submitting the insurance application forms and for obtaining any health declarations and submit them to the insurance company. OAB shall not assume any responsibility for any loss in respect of the insurance policy if the Customer has submitted any incomplete or incorrect forms in connection with the insurance policy and/or any declarations made in relation thereto.

12.5 The Customer shall be responsible for payment of the premium, commissions, fees, etc., in respect of any insurance policy that is required to be maintained by the Customer in accordance with these Terms and Conditions. The proceeds of such insurance, when received, shall be used by OAB to cover the Personal Loan Debt.

12.6 If in case the Customer prepays the full Loan Amount, any insurance premium which may be refunded by the insurance company to OAB shall be payable to the Customer.

12.7 The Customer acknowledges that any insurance proceeds paid or payable in respect of any insurance policy maintained pursuant to this Agreement shall be applied towards repayment of the Personal Loan Debt.

13 Undertakings

13.1 The Customer shall notify OAB immediately of any change in the information or financial details supplied by the Customer to OAB in support of the application for the Loan.

13.2 The Customer must ensure that all declarations, information and documentation it provides in connection with obtaining this Loan including but not limited to any insurance (including in respect of any insurance proposal form), is true, accurate and complete in all respects and not misleading in any respect and the Customer agrees that it will be liable to OAB for any loss (including direct and consequential loss) that OAB incurs as a result of, or in connection with, any such information not being true, accurate and complete in all respects or misleading in any respect.

14 Events of Default/ Default in Payment

14.1 Each of the events set out below is an Event of Default/ Default in Payment:

(a)        if the Customer fails to make any payment due hereunder, whether of a principal, interest, fees, commission, charges or otherwise;

(b)        if the Customer uses the Loan for a purpose other than that described above;

(c)        if any representation or statement made by the Customer to OAB is inaccurate,

(d)        if the Customer dies;

(e)        if not self-employed, in case of resignation from or termination of employment;

(f)         if there is a failure to complete any of the legal formalities relating to the Security Documents including but not limited to salary assignment in favor of OAB, or the Customer fails to fulfill any undertaking he/she made under this Agreement;

(g)        if the Customer commits any other breach of any of the terms of this Agreement;

(h)        if the Customer breaches a term of any of the Security Documents;

(i)         if the Customer leaves the Sultanate of Oman as specified in Clause 16 hereof;

(j)         if any change in law or circumstances occurs which OAB considers affects this Agreement and if OAB and the Customer cannot agree to such changes to this Agreement to cover such change in law or circumstances;

(k)        where the change in circumstances of Customer causes or is likely to cause the Customer to be categorized as high risk;

(l)         in the event the Customer drawdowns the Loan amount without satisfying the conditions precedent to OAB’s satisfaction.

14.2 Upon the occurrence of an Event of Default the Personal Loan Debt and any other sum then payable under this Agreement, shall immediately become due and payable.

14.3 If an Event of Default/ Default in Payment has occurred, then at any time thereafter, OAB may, by written notice, or by any other means of communication, to be given the Customer do one or more of the following at any time or times and in any order:

(a)        to claim from the Customer any sums due and payable together with interests and legal costs under this Agreement; or

(b)        enforce any or all of its rights under this Agreement and/or the Security Documents, under applicable law.

15 Interest of delay

In the event that any amount payable by the Customer (whether of principal, interest, commitment, commission or otherwise) under or in relation to this Agreement or any related documentation is not paid on the due date, or otherwise in the manner provided for in this Agreement (or in such other documentation), the Customer shall pay interest of delay of [1]% per annum (the “Interest of Delay”) on the overdue sum over and above the agreed rate of interest otherwise payable on the applicable facility from the date of default/ Default in Payment  up to the date of receipt of the full loan amount by OAB. 

16 Place of Residence

The Customer warrants that he/she resides in the Sultanate of Oman and if the Customer shall intend to leave the Sultanate of Oman, the Customer undertakes to inform OAB in writing at least one month in advance and to repay the balance of the Loan outstanding and all other amounts due to OAB hereunder before so leaving.

17 Debiting and Crediting of Account

17.1 The Customer hereby authorizes OAB to debit the monthly repayment instalments and interest, insurance premium, processing fees, commission, charges and any other monies due under this Agreement, to the Customer’s current or savings account or any other account held with OAB until the Loan is fully repaid and the Customer undertakes to ensure that the credit balance on such accounts will be sufficient to meet such repayment instalments and the interest payable on the Loan and any other monies due under this Agreement, as such sums fall due for payment.

17.2 Any interest, commission, charges, costs or expenses including legal expenses and lawyer’s fees due or incurred in respect of the Loan or any transaction of any kind carried out at the Customer’s order or on the Customer’s behalf, whether or not by written order, shall become part of the Customer’s liability to OAB and may be debited by it to any of the Customer’s accounts with OAB.

18 Statements of accounts

18.1 OAB shall send the Customer monthly operative account statements via email from the date of this Agreement, provided the Customer furnish OAB with valid email address. The Customer may request additional statements from time to time. OAB’s approved/ordinary tariff from time to time (as referred to in the Tariff of Charges or otherwise approved by OAB) shall apply for any such additional statements.

18.2 The Customer undertakes to check carefully all statements of account received from OAB and if within one month of the date of dispatch of such a statement of account to the Customer’s address as it appears in the records of OAB, no objection has been received from the Customer, then the balance shown therein will be considered correct and the Customer may not raise any objection in respect of such statement of account.

18.3 The Customer acknowledges that should the Customer not receive a statement of account for any period it is solely and entirely the responsibility of the Customer to demand such a statement of account from OAB.

18.4 The Customer hereby acknowledges and agrees that except in the case of manifest error, a statement or a certificate duly signed on behalf of OAB shall be conclusive and binding evidence on and against the Customer of all and any amounts due to OAB according to its books and accounts and which the Customer is bound to pay hereunder and the Customer specifically waives any right to challenge the correctness of any such books and accounts except as set out in Clause 18.2

19 Consolidation

19.1 In addition to and without prejudice to any right of set off to which OAB may be or become entitled by law, and in accordance with Article 346 of Oman Commercial Law issued through Royal Decree 55/90, OAB and the Customer expressly agree that all accounts of the Customer with OAB, including all accounts with any other office or branch of OAB anywhere in the world and including any accounts in any foreign currency, shall constitute a single combined account and that OAB and the Customer hereby agree for the purposes of Article 249 of Civil Transactions Law issued through Royal Decree 29/2013 that OAB shall have and may exercise the right of voluntary set-off as between all debit and credit balances on all such accounts and that the benefit of all and any security provided by the Customer in respect of this single combined account or any part thereof shall be available to and enforceable by OAB to secure the entire outstanding balance due to OAB at any time on such single combined account and any part thereof.

20 Costs and Expenses

In addition to and independent from the obligations mentioned above, the Customer hereby irrevocably and unconditionally undertakes to indemnify OAB against all expenses (including but not limited to court fees, legal expenses and lawyers’ fees) which OAB may incur in enforcing its rights against the Customer under this Agreement and/or any of the Security Documents. The Customer irrevocably authorizes OAB to deduct such costs and expenses from the Customer’s account held with OAB.

21 Currency conversion

OAB may convert any money received in connection with this Agreement and/or the Security Documents from the currency in which it is received into any other currency that OAB requires for the purpose of, or pending, the discharge of the Personal Loan Debt. Any such conversion will be effected at OAB’s then prevailing spot buying rate of exchange.

22 Waiver

No omission or delay on the part of OAB in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or of any other right, power or privilege.

23 Rights Cumulative

The rights and remedies herein provided are cumulative with and not exclusive of any rights or remedies provided by law.

24 Notices

Any claim, demand, summons or other notice to be given to OAB or to the Customer under this Agreement shall be duly served if delivered by post with a record of delivery to his/her or its address as specified in the Personal Loan Application email (provided a valid transmission report is received). Further, the Customer undertakes to immediately notify OAB in writing of any subsequent change in the Customer’s address and contact details.

25 Variation of Agreement

25.1 OAB shall have the right, upon modification, change, cancellation or addition to the laws in force in the Sultanate or in the event of financial, economic or other events which OAB considers to be substantially affecting the Agreement, to vary, amend change or cancel this Agreement or to agree with the Customer on concluding an agreement appropriate to the developments. In the event that any variation, modification or change of the agreement, that is not acceptable to the Customer, the Customer shall immediately pay the full Loan amount with the interests up to the date of full and final payment of the Loan and have the right to exit the Agreement on the same terms and conditions agreed in this Agreement.

25.2 Any amendment or variation made pursuant to this Clause 25 shall be notified by OAB to the Customer and shall take effect from the date of such notice or such later time as OAB may specify in that notice.

26 Money Laundering

26.1 OAB may take whatever action it considers appropriate to meet any obligations, either in the Sultanate of Oman or elsewhere in the world, relating to the prevention of fraud, money laundering or terrorist activity and the provision of financial and other services to persons who may be subject to sanctions.

26.2 These actions by OAB shall include, but not be limited to, investigating, suspending payments pursuant to this Agreement and investigating the source of or intended recipient of funds. It may also include making enquiries to establish whether a person is subject to sanctions.

26.3 OAB shall not be liable for any loss, liability, delay or cost incurred by the Customer as a result of actions taken by OAB under this clause and OAB does not warrant that any information on OAB systems relating to any payment messages and communications will be accurate or complete to the extent that it relates to any Customer’s instruction which is subject to such an action when such information is provided.

27 Data Protection

27.1 When we handle your data, in your capacity as a Customer, we represent and warrant that your data will be:

(a)        processed lawfully, fairly and in a transparent manner;

(b)        collected for the only specific, explicit and legitimate purpose of conducting your Account;

(c)        adequate, relevant and limited to whatever is necessary in relation to your Account;

(d)        disregarded, erased or rectified without delay whenever deemed inaccurate;

(e)        kept in a form preventing identification of your identity for longer than is necessary for the purposes for which the personal data is being processed; and

(f)         processed in an appropriate standard of data security.

27.2 Pursuant to Article 143 of the Omani Banking Law issued through Royal Decree No. 2/2025, the Customer irrevocably authorizes OAB, should it so desire, to disclose to any of its affiliates, any party or to OAB’s counsels, and any other person such information about the Customer and its transactions as OAB considers appropriate.

28 Assignment

The Customer may not transfer or assign any of its rights and obligations under this Agreement without OAB’s express agreement in writing. OAB may assign or transfer any or all of its rights or obligations under this Agreement to any person or entity (at its sole discretion) without the consent or approval of the Customer.

29 No Withholding

Payments by the Customer shall be made to OAB without any set-off, withholding or condition of any kind except that if the Customer is compelled by law to make such withholding, the sum payable by the Customer shall be increased so that the amount actually received by OAB is the amount it would have received if there had been no withholding.

30 Severability

Each of the clauses and provisions of this Agreement are severable and the invalidity or unenforceability of any one or more such clauses or provisions shall not alter the remaining such clauses and provisions which shall remain in full force and effect.

31 Discharge

This Agreement shall remain in effect until OAB confirms in writing to the Customer that all payments due from the Customer to OAB hereunder have been made in full and that all other obligations and liabilities of the Customer to OAB hereunder have been discharged in full.

32 Complaints

32.1 OAB has a complaints policies and procedure which can be used to bring to its attention any questions, suggestions or complaints. For this purpose, the Customer may contact OAB representatives directly at its branches, or through its call-center named “Fil Khidmah” at our number 24754444. If the Customer is calling from outside the Sultanate of Oman, please add the country code (+968) before dialing.

33 Loan Top Up and Buy Out Charges

33.1 A fee decided by OAB and published in OAB’s Tariff of Charges shall be payable by the Customer to OAB to cover the costs of processing any application for any increase requested to the personal loan.

33.2 The Customer shall be responsible for all transfer fees and charges in the case of the Personal Loan being used to repay a loan with another bank.