Muscat — The Central Bank of Oman (CBO) has issued a reminder to consumers regarding the maximum percentage of their monthly salary that can be deducted for loan repayments, depending on the type of financing.
According to the CBO, deductions for personal loans only are capped at 50% of an individual’s salary. However, when combining a housing loan with a personal loan, the deduction limit rises to 60% of the borrower’s monthly income.
The regulator also advised borrowers to be mindful of repayment terms, noting that shorter loan durations result in lower interest or profit paid, while postponing installments increases the total financing cost and loan period.
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The guidance comes as part of the CBO’s ongoing consumer awareness efforts to promote responsible borrowing and financial planning amid rising demand for personal and housing finance in the Sultanate.
The central bank regularly issues updates and advisories aimed at strengthening financial literacy and ensuring borrowers make informed decisions about repayment obligations and debt management.
