The Central Bank of the United Arab Emirates has amended rules for the transfer of retail loans from one bank to another.

As per the amended rules, banks and finance companies will have to slash interest rates, without increasing the repayment tenure for the retail loans.

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In a statement, the apex bank of UAE said that it has also revised regulations pertaining to personal loans as well as other services provided to individual clients

The move comes after a decision taken by the Central Bank’s board of directors was published in the Official Gazette.

As per the amended law, any borrowers may transfer their personal loan from any bank in the UAE in return for an early repayment commission not exceeding 1% of the remaining amount of the loan, or AED 10,000 ($2,722.45), whichever is lower.

Other UAE-based banks or financial services organisation can accept loan transfer requests under certain conditions which includes commitment to the new rules related to loan amount, repayment period as well as monthly instalments.

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The latest announcement by the UAE Central Bank is one of several decisions taken by the UAE government to boost financing and economy condition in the country.