MUSCAT: In a huge relief to borrowers affected due to the coronavirus pandemic, the Central Bank of Oman (CBO) has extended the validity of loan deferment scheme till March 31, 2021.

In a circular issued by CBO Executive President Tahir bin Salim Al Amri, the loan instalments, interest for affected borrowers particularly the SMEs has been extended for the next seven months. “It has been decided to further extend the availability of the deferment scheme of loans/ instalments/interest for affected borrowers particularly SMEs, without adversely impacting the risk classification of such loans, till March 31, 2021,” CBO said in the circular.

In a slew of relief measures announced in the circular, the Central Bank also provided interim-relief to housing loan applicants, particularly first-time buyers of residential property. The CBO will reduce the Loan to Value margin for housing loans to 10 per cent, down from the existing requirement of 20 per cent.