Abu Dhabi: Residents seeking to borrow money from UAE banks should make sure that they receive detailed timetables for loan repayment to avert problems with creditors, the UAE Central Bank (CB) said on Sunday.
In a statement, the CB said it encourages nationals and expatriates seeking to obtain loans from banks to take “studied and careful” decisions and ensure that they get enough clarifications from the creditor about the loan, interest and repayment terms.
“They also should demand that banks provide them with a copy of the repayment timetable showing the payment installments and interest rates…. They should continuously seek clarification on whether rates on their loans will change by time and how such change will impact repayment and loan term,” CB said.
The statement said the Central Bank has just launched a section for consumer protection, which will focus on promoting “financial culture” among consumers in coordination with banks and other financial establishments.
