Professional Documents
Culture Documents
PERSONAL FINANCE
Author’s Name
Professor (Tutor)
The Date
Student | 2
Table of Contents
Introduction 3
Loan Offers 4
Differences 6
Conclusion 6
References 7
Student | 3
Personal Finance
Introduction
There are different debts that Mr. Ali had taken which can be categorized into different parts.
Mr. Ali had taken loans from different sources such as from his parents, his siblings that is his
brother, from the bank and even from credit cards. Mr. Ali had lent student loans to pay for his
studies and these three different loans has to be paid back, which is estimated around 5200 OMR.
He also owes 364 OMR in addition, to his brother. He had lent this from him earlier. He had lent
572 OMR from his parents, which means he must be repaying the money. Further, he has a credit
history in his two credit cards as well. The amount lent is 936 OMR and 728 OMR respectively
from each credit card. The debt repayment is pretty short and only after the repayment, he will be
able to lead a peaceful life. I suggest that Mr. Ali lends loans from Oman Banks to clear his
Mr. Ali had started taking loans from the time he was pursuing his education. There have been
significant changes in Mr. Ali’s lift. He earns 6800 Omani Riyals per year from the job he does.
This will be his first step to pay off the loans. He has been selected for a new job, which has
become a motivation for him to clear his debts out completely and start afresh. Because as Mr.
Ali has started earning, he will be able to procure the loans easily and his credit score will also be
high. Depending upon the annual salary and other specifications, the banks will be offering the
loan amount, interest rate and a reasonable repayment tenure. The consolidated loans have
reasonable rate of interest and a good time period or tenure which can help the loaners to repay
the loans very easily. They can also repay the bank within this tenure so that the credit score is
This article summarizes different loans that Mr. Ali can take from different banks in Oman. The
loans are the most optimum and can be used at best by Mr. Ali to start his new life.
Loan Offers
In the loan plan 1, Bank Dhofar is considered to be ideal. Bank Dhofar was founded in the year
1992 and has been a very trustworthy bank since its inception. It has been headquartered in
Muscat which is an important city of Oman. Bank Dhofar has been involved in different sectors
of the bank and in giving loans to different types of requirements. The bank is popular for giving
out loans in the retail sector, corporate banking and in the management of the assets. This bank is
approached by the customers mostly for loans such as education loans, personal loans, and
housing loans.
As this bank is known for giving out personal loans, Mr. Ali can choose this bank to pay the
loans that he has taken from his relatives and his family. He has taken the loan from his parents
and his brother who is also his sibling for the time when he was pursuing his education. Personal
loans are given by the bank at low-interest rates and for a long tenure period (Hashmi, 2011).
This means, that Mr. Ali can take this loan amount at a low-interest rate and with that loan, he
can repay his relative and at the same time, he can pay back the bank with the amount that he is
The loan amount for personal debts can be 8000 Omani Riyals. This loan can be taken at a rate
of interest of 4.8% and for the tenure of 10 years. Each month, Mr. Ali will pay 84.07 Omani
Riyals and the total amount of repayment to the bank will be 10000 Omani Riyals.
Student | 5
This loan plan talks about the bank headquartered in Muscat. This bank is Bank Nizwa. The bank
was founded in the year 2012 and has shown quite a huge turnover over a period of time. It has
gained the trust of the people of Oman, through its attractive banking policies and various
different services which are not provided by other banks. The employees have been very helpful
in all the services and the hospitality is unmatched. The bank is known for retail banking,
corporate banking and wealth management. Since it is a new player in the market, it is not
known globally.
Mr. Ali can ask this bank for an education loan. The education loan that Mr. Ali had taken when
he was a student, amounts up to 5200 Omani Riyals. This education loan can be repaid to the
bank by taking a consolidated loan from Bank Nizwa. Bank Nizwa has been known for giving
loans at a very liberal rate of interest and a tenure that is flexible and can be determined by the
loaner (Scherrer, 2004). This means, that if the tenure is short, the rate of interest will be more
but the repayment can be done fast and the debts can be cleared very quickly too. This makes
The tenure can be as short as 120 months that is 10 years and at a rate of interest of 4.8%.
Bank Sohar was established in the year 2007 and from then till today, it has been involved in
vivid sectors. From the wholesale banking sector to the asset management, the bank provides
service in each sector. Since the bank is functioning in many different areas and the spread of the
bank is huge, it is one of the most trustworthy banks in Oman. There are other sectors such as
Student | 6
Retail Banking, Investment Banking, Government Syndicates and other Islamic Banking Sectors
Mr. Ali can take a loan from this bank to pay the credit card loans that he has taken over the
period of time. Since this bank is a powerful player in the Islamic Banking Sectors, Mr. Ali will
be able to procure the loan at a low rate of interest and a short tenure so that he can repay the
At a monthly installment of OMR 87 and the rate of interest is 5.99%, Mr. Ali can pay the bank
Differences
Bank Speciality
Conclusion
According to the past records of Mr. Ali, it is observed that he was not punctual about the
repayment of debts. The main reasons behind this were that he had an unstable source of income.
He did not earn so much that he could repay the debts. But, due to his hard work and luck, he has
secured a decent job which he has to hold on to in order to finish paying the debts from the
people he had borrowed money from and also, pay the bank for the consolidated loans.
Student | 7
References
Jacobson, T. and Roszbach, K. (2003). Bank lending policy, credit scoring and value-at-risk.
Kale, J. and Meneghetti, C. (2011). The choice between public and private debt: A survey.
Srairi, S. (2013). Ownership structure and risk-taking behaviour in conventional and Islamic
banks: Evidence for MENA countries. Borsa Istanbul Review, 13(4), pp.115-127.