Loan fees in Oman: what CBO allows

Updated 21 Oct 2026

What a bank in Oman may charge on a personal or housing loan besides the interest. CBO caps each fee in its Master Circular on Personal Loans/Finance — and pensioners on smaller pensions pay less.

Processing fee: at most OMR 25 on a personal loan and OMR 50 on a housing loan, none for pensioners with a net pension under OMR 1,000. Paying off early: at most 1% of the amount prepaid, none for pensioners with a net pension up to OMR 1,000 and none when a loan is topped up, consolidated or restructured. Credit-card issuance or renewal: at most OMR 50 a year. Late interest: at most 1% a year on the overdue amount.

Not a valid document. Estimate for information only — not financial advice, not an offer of credit and not a bank document. Errors are possible. Only your bank's or finance company's official offer letter, contract and statements are binding.

The fee caps

The fee caps — Oman · amounts in OMR
Fee	CBO cap
Processing fee, personal loan	OMR 25; none for pensioners with a net pension under OMR 1,000
Processing fee, housing loan	OMR 50
Early settlement	1% of the amount prepaid; none for pensioners with a net pension up to OMR 1,000; none on a top-up, consolidation or restructuring
Credit-life insurance / takaful admin fee	Administrative fee for credit-life insurance/takaful: at most 0.05% of the loan, at least OMR 5 and at most OMR 75.
Credit card, issuance and yearly renewal	OMR 50 (more only for high-end cards, reflecting the benefits)
Late (penal) interest	1% a year, on the overdue amount and for the overdue period only

Paying off early

Early settlement charge: at most 1% of the amount prepaid; none for pensioners with net pension up to OMR 1,000 (also when another bank takes the loan over). The charge is on the amount you prepay, not on the interest you save. No early-settlement charge when a loan is topped up, consolidated or restructured. Another bank may take over a personal loan, keeping its category (housing stays housing).

Worked example: prepaying and settling

A part prepayment of OMR 5,000: the charge may be at most 1% = OMR 50.000.
Settling in full a personal loan with OMR 6,000 still owed and 30 monthly instalments to go at 6% (our assumption): instalment OMR 215.874 a month; paying on to the end costs OMR 476.205 more in interest. Settling today costs at most OMR 6,060.000 — the balance plus a charge of at most OMR 60.000 — and saves OMR 416.205.
A pensioner with a net pension up to OMR 1,000 settles the same loan for OMR 6,000.000: no charge.

Work it out: early settlement calculator · personal loan calculator · housing loan calculator.

No flat rates, no teaser rates

Rates must be the effective rate on the reducing balance — no flat rates; no low teaser rate that rises later. So the rate in your offer is the one interest is really charged at, month by month on what you still owe — compare offers on that rate plus the fees above. CBO's promotions circular adds that a loan advertised with more than one rate must show every rate, its period and the effective rate for the whole term. The rate itself is capped: CBO interest rate ceiling explained.

Credit cards

Card interest against salary is at most 18% a year and the issuance or renewal fee at most OMR 50. CBO sets no minimum-payment percentage; paying only a small minimum keeps you paying 18% for years — see credit card: the minimum payment trap.

CBO's limits come from its Master Circular on Personal Loans/Finance (BM 1213, 13 February 2025); CBO says its 6% ceiling may change from time to time — your bank's offer is what counts.

Finance and leasing companies

Finance and leasing companies are licensed by CBO but are not banks: CBO's Master Circular on Personal Loans/Finance for banks (BM 1213) does not apply to them. Their own CBO circulars — FM 41 (2023) on what they may do and FM 31 (2013) on charges — say:

Personal loans: without collateral and for a non-business purpose only. All debt payments at most 50% of net monthly salary under OMR 1,000 a month, and at most 60% from OMR 1,000, or when you also repay a housing loan. Net salary is what reaches your bank account each month.
Term: at most 7 years (banks: 10), plus up to 2 monthly deferments a year at your request; the company must consider your age so that the loan ends reasonably ahead of retirement.
Top-up: Finance and leasing companies: a personal-loan top-up only after 12 months of satisfactory payment, after 50% of the loan is repaid, or when the first loan did not use the customer's full eligibility.
Interest rate: CBO does not cap the interest rates of finance and leasing companies, unlike banks; in 2013 it found rates as high as 24% a year and told the companies to review them and be moderate. Compare offers on the real yearly rate.
Charges: paying off early at most 1% of the amount prepaid; rescheduling at most OMR 10 for an individual; duplicates at most OMR 5; basic certificates (no-due, release letter, balance confirmation) only a nominal amount; late (penal) interest at most 2% over the loan or lease rate (CBO's wording: "shall not exceed 2 % of the same").
Up front: all terms and charges, including the effective rate, must be disclosed in full before you sign, and changes notified well ahead.

A loan from a finance and leasing company still counts in a bank's debt-burden check. The older master circular for these companies (FM 19, 2006) is not on CBO's website, so a rule in it that FM 41 did not change could still apply — ask the company to show its terms in writing.

Questions people ask

What processing fee can a bank in Oman charge?

In Oman, at most OMR 25 on a personal loan and OMR 50 on a housing loan. Pensioners with a net monthly pension under OMR 1,000 pay no processing fee.

Is there a charge for paying off a loan early in Oman?

At most 1% of the amount prepaid in Oman. Pensioners with a net pension up to OMR 1,000 pay none, and there is none when a loan is topped up, consolidated or restructured.

What may a bank charge for loan insurance administration?

In Oman, administrative fee for credit-life insurance/takaful: at most 0.05% of the loan, at least OMR 5 and at most OMR 75.

What is the maximum credit card fee in Oman?

In Oman, the issuance and yearly renewal fee is at most OMR 50; more only for high-end cards, reflecting the benefits.

Do finance and leasing companies have the same fee caps?

No — their own CBO circular caps a pre-payment charge at 1% of the amount prepaid, rescheduling at OMR 10 for an individual and penal interest at 2% over the loan rate (CBO's wording: "shall not exceed 2 % of the same"); their interest rates are not capped by CBO.

How much late interest can a bank charge?

At most 1% a year, on the overdue amount and for the overdue period only, in Oman. Islamic banks have the same ceiling on default penalties.

Sources (4)

Rules this page uses: 32, from 4 source documents. Each rule shows the date we last checked it.

Processing fee: at most OMR 25 on a personal loan and OMR 50 on a housing loan; none for pensioners with net pension under OMR 1,000. (source, checked 2026-10-11)
Processing fee on a housing loan: at most OMR 50. (source, checked 2026-10-11)
Pensioners with net monthly pension under OMR 1,000 pay no processing fee, and those up to OMR 1,000 no early-settlement charge. (source, checked 2026-10-11)
Early settlement charge: at most 1% of the amount prepaid; none for pensioners with net pension up to OMR 1,000 (also when another bank takes the loan over). (source, checked 2026-10-11)
No early-settlement charge when a loan is topped up, consolidated or restructured. (source, checked 2026-10-11)
Another bank may take over a personal loan, keeping its category (housing stays housing). (source, checked 2026-10-11)
Administrative fee for credit-life insurance/takaful: at most 0.05% of the loan, at least OMR 5 and at most OMR 75. (source, checked 2026-10-11)
Credit-card issuance and yearly renewal fee: at most OMR 50 (more only for high-end cards, reflecting the benefits). (source, checked 2026-10-11)
CBO ceiling on the interest (or profit) rate of credit cards against salary: 18% a year. (source, checked 2026-10-11)
Late (penal) interest at most 1% a year, on the overdue amount and for the overdue period only; Islamic banks: the same 1% ceiling on default penalties. (source, checked 2026-10-19)
Rates must be the effective rate on the reducing balance — no flat rates; no low teaser rate that rises later. (source, checked 2026-10-11)
CBO ceiling on the interest (or profit) rate of housing loans, personal loans and overdrafts against salary: 6% a year — CBO says the ceiling may change from time to time. (source, checked 2026-10-19)
Personal loan (not for housing): at most 10 years, or until age 70 if earlier. (source, checked 2026-10-19)
Finance and leasing companies may give individuals personal loans without collateral, for a non-business purpose only; the company must check all the customer's debts (bank statement, credit report) and consider age so that the loan is repaid reasonably ahead of retirement. (source, checked 2026-10-12)
Finance and leasing companies, personal loans: the debt-burden limit differs below and from a net monthly salary of OMR 1,000. (source, checked 2026-10-12)
Finance and leasing companies, personal loans: debt burden at most 50% of net salary when the net monthly salary is under OMR 1,000. (source, checked 2026-10-12)
Finance and leasing companies, personal loans: debt burden at most 60% of net salary when the net monthly salary is OMR 1,000 or more, or when the customer also repays a housing loan. (source, checked 2026-10-12)
For finance and leasing companies, net salary is the salary the customer receives in the bank account every month. (source, checked 2026-10-12)
Finance and leasing companies: a personal loan runs at most 7 years. (source, checked 2026-10-12)
Finance and leasing companies may allow at most two monthly deferments a year on a personal loan, at the customer's request, on top of the 7-year maximum term. (source, checked 2026-10-12)
Finance and leasing companies: a personal-loan top-up only after 12 months of satisfactory payment, after 50% of the loan is repaid, or when the first loan did not use the customer's full eligibility. (source, checked 2026-10-12)
CBO does not cap the interest rates of finance and leasing companies, unlike banks; in 2013 it found rates as high as 24% a year and told the companies to review them and be moderate. (source, checked 2026-10-12)
Finance and leasing companies: paying a loan or lease off before the due date costs at most 1% of the amount prepaid or foreclosed. (source, checked 2026-10-12)
Finance and leasing companies: rescheduling a loan or lease costs at most OMR 10 for individuals and small businesses (OMR 25 for others). (source, checked 2026-10-12)
Finance and leasing companies: duplicates (including a duplicate statement of account) at most OMR 5; basic certificates such as a no-due certificate, release letter or balance confirmation only a nominal amount. (source, checked 2026-10-12)
Finance and leasing companies: penal (overdue) interest at most 2% over the loan or lease rate (CBO: the penal rate 'shall not exceed 2 % of the same'). (source, checked 2026-10-12)
Finance and leasing companies must disclose all terms and charges in full and in advance — notice boards, pamphlets, their websites and the loan documents — including the effective rate; changes must be reasonable and notified well ahead. (source, checked 2026-10-12)
Banks may advertise personal loans but may not offer prizes or incentives, in cash or kind (token gifts included), on any loan or financing product; only credit-card campaigns may carry prizes. (source, checked 2026-10-12)
Where a personal loan has more than one rate (a lower rate first, a higher one later), the bank must show every rate with its period, how often the rate is reset and the effective rate for the term, in all documents and on its website. (source, checked 2026-10-12)
Offers of 'instalment waivers' must tell customers their effect, such as a longer term and more interest. (source, checked 2026-10-12)
Banks must not promote credit cards as a substitute for medium- or long-term personal loans. (source, checked 2026-10-12)
Every concessionary offer or promotion must state its validity period, and discount schemes may have no hidden costs or charges. (source, checked 2026-10-12)

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