Parliament Committee Recommends Extending Personal Loan Repayment Periods

TDT | Manama

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The Financial and Economic Affairs Committee of the House of Representatives has recommended approval of a proposal to extend the maximum repayment period for personal loans from seven to ten years.

The proposal, submitted by MP Bader Al Tamimi, cites several key considerations, including mitigating the financial impact of the COVID-19 pandemic, boosting consumer purchasing power, and assisting citizens facing loan repayment difficulties.

The proposal aims to enhance social stability, facilitate loan rescheduling for easier monthly payments, alleviate the burden of rising living costs, and stimulate national economic recovery.

The proposal urges the government to instruct the Central Bank of Bahrain (CBB) to issue the necessary directives to extend the maximum repayment period for personal loans offered by banks and financial institutions to ten years, while safeguarding the rights of these institutions.

The committee's report notes that it sought the CBB's views on April 3, 2023, but had not received a response by the time the report was submitted. Despite the lack of a CBB response, the committee recommended approval, citing compelling considerations of public interest. The proposal will now proceed to the full House for debate and a vote in its next session.