Banks urged to maintain monthly loan instalments of individuals

AMMAN — The Central Bank of Jordan (CBJ) on Thursday called on banks in the Kingdom to maintain the monthly loan instalments granted to individual borrowers with a variable return interest rate, including prolonging the repayment period or moving the increase of instalment amount to the end of the loan period.

The CBJ's decision is in light of the forecast changes for interest rates and to alleviate repayment burdens for retail clients, the Jordan News Agency, Petra, reported. 

The CBJ told banks that if they opt for delaying the increase of the instalment amount to the end of the loan period, they should consider any possible drops in interest rates and reflect the drops on the delayed amounts. 

They also recommended banks to inform clients through SMS or any other means on the mechanism that will be followed in this regard.

The CBJ also said that banks have to inform clients that they should visit their branches in case they want to maintain the instalment amount and extend the loan term.