Compound Interest on Loans Is Still Contentious

New rules governing bank loans passed by the Majlis this week, legally ban lenders from charging compound interest and is designed to help boost the business environment, lawmakers say.  
In line with a broader legislation package, known as “Facilitating Business Permit Issuance Bill”, MPs ratified regulations that oblige banks and credit institutions to “electronically register the lending agreements”.
The order obliges lenders to develop electronic platforms to ease borrowers’ access to data about the provisions of the loan agreement with the bank and changes thereto.  
The loan agreement must also be easily accessible to the guarantors and mortgagors, and include all the data about repayment guarantees, evaluation of the mortgage, granted deferrals and the likes.