UAE banks can defer loan repayments to help flood-hit residents

The Central Bank of the UAE (CBUAE) today issued a notice to all banks and insurance companies to allow the deferral of repayment of instalments of personal and car loans for customers affected by the repercussions of the weather condition for a period of six months.

The deferral shall be without imposing additional fees, interest or profits, or otherwise increase the principal amount of the loan for the deferral of the repayment of instalments.

The Central Bank further confirmed that the damages to vehicles and homes resulting from the heavy rains during the unstable weather conditions the country witnessed last week are covered by insurance if there is an insurance policy against loss and damage or what is normally referred to as ‘comprehensive insurance’. The insurance companies shall be considered responsible for indemnification.

SOURCE: Khaleej Times

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