Markabati Car Loan T&C

Borrower’s Obligations

The Borrower undertakes and covenants:

• Repayment Obligations

  • To repay the Loan, Interest, and all costs, fees and expenses to the Bank within the Term on their due date.

  • If the due date for an Installment or any other payment falls on a Friday, Saturday, or public holiday in Oman, such payment shall be deemed due on the immediately preceding business day.

• Maintaining Funds & Direct Debit Authorization

  • To always maintain in the Borrower’s account (“Account”) sufficient funds equivalent to the agreed monthly Instalments plus Interest.

  • The Borrower irrevocably authorizes the Bank to debit the Account for:

    • Loan repayments

    • Instalments

    • Interest

    • Costs and Fees (processing fees, documentation fees, vehicle registration fees, legal fees, etc.)

    • Any amended Interest, Costs or Fees as notified by the Bank

• Vehicle Valuation & Preservation

  • To have the Vehicle valued by a Bank-approved valuer at the Borrower’s cost.

  • To not perform or omit any act that diminishes the Vehicle’s value.

• Verification by the Bank

  • To consent to the Bank contacting or visiting the Borrower’s office/residence or using any method for verification or re-verification of the Borrower’s provided information.

• Restriction on Disposal of Vehicle

  • To not sell, mortgage, or lease the Vehicle during the Term without the Bank’s written consent.

• Leaving the Sultanate of Oman

  • If intending to leave Oman permanently, to:

    • Inform the Bank at least one month in advance

    • Repay the remaining Loan balance, Interest and Costs and Fees before departure

Security

In consideration of the Loan, the Borrower agrees to:

• Salary Assignment

  • Assign salary, pension, and/or end-of-service benefits to the Account to cover Loan, Interest and Costs and Fees.

• Mortgage/Charge Over Vehicle

  • Register a mortgage/charge over the Vehicle with the Royal Oman Police in favour of the Bank for the full Term and any extensions.

  • Authorize the Bank to take possession of the Vehicle (with or without court proceedings) and sell it to recover outstanding amounts.

  • Bear responsibility for all taxes, fees, fines, maintenance, and other costs.

• Lien Over the Account & Set-off Rights

  • Create a lien over the Account in favour of the Bank.

  • Agree that all accounts of the Borrower (local or international, including foreign currency accounts) constitute a single combined account.

  • Allow the Bank full right of set-off across all accounts.

• Additional Security

  • Provide additional securities (promissory notes, guarantees, etc.) if required by the Bank.

Representations

The Borrower represents and warrants that:

• All existing financial liabilities and commitments (other than the Loan) have been disclosed in writing.

• All information furnished to the Bank is accurate, complete and not misleading.

• No material facts have been omitted or concealed that could adversely affect ability to repay the Loan.

Events of Default

The Bank may demand immediate repayment of all outstanding Loan amounts, Interest and Costs and Fees if any of the following occur:

• Failure to repay any monthly Instalment when due.

• Borrower loses employment (resignation, dismissal, retirement).

• Any security provided lapses or decreases in value below required levels.

• Bank is prevented by law from allowing the Loan to remain outstanding.

• Any representation or statement by the Borrower proves incorrect or misleading.

• Borrower fails to perform or comply with this Agreement or any security/related documentation.

• Circumstances arise which, in the Bank’s opinion, indicate the Borrower may be unable to comply with the Agreement.

• Borrower breaches terms of any other credit facility with the Bank or another financial institution.

Consequences:

• Borrower must immediately repay the entire outstanding Loan plus accrued Interest, Costs and Fees.

• The Bank has the right to repossess and sell the Vehicle.

• If sale proceeds are insufficient, the Borrower remains liable for the shortfall plus all related expenses.

Bank’s Records and Statement

• In any legal proceedings, the Bank’s statement of account in respect of the Borrower’s Account shall be final and conclusive evidence of outstanding liability, unless a manifest error is proven.

Insurance

The Borrower must maintain throughout the Term:

• Life Insurance

  • Life insurance coverage of OMR 300,000.

• Vehicle Insurance

  • Full replacement-value insurance covering destruction, theft, or loss of the Vehicle.

(Collectively referred to as “Insurance Policies”)

Borrower’s Obligations:

• Timely renew and maintain the Insurance Policies.

• Pay all premiums when due.

• Provide the Bank with:

  • Copies of the Insurance Policies

  • Proof of premium payments

• If the Borrower fails to obtain/renew Insurance Policies:

  • The Bank may procure the policies at the Borrower’s sole cost.

Bank as Beneficiary:

• The Borrower must name the Bank as first beneficiary and loss payee.

General Provisions

• This Agreement supersedes all previous agreements or understandings between the Parties regarding the Loan.

• No modification is valid unless in writing and signed by both Parties.

• Borrower may not assign or transfer obligations;

  • The Bank may assign its rights and obligations to another institution without Borrower’s consent.

• Under Article 70 of Oman Banking Law 114/2000, the Borrower authorizes the Bank to disclose information to any party or the Bank’s advisors as it deems appropriate.

• All notices and communications must be in writing and are deemed received:

  • By hand: upon delivery

  • By post: after 3 business days (proof of posting required)

  • By fax/electronic media: upon confirmed transmission (hard copy to follow)

  • Any other legitimate method deemed appropriate by the Bank

• The Borrower declares that all terms and conditions have been read, understood, and acknowledges receipt of a duplicate copy of the Agreement.