What is ODB?

Oman Development Bank (ODB), the leading development financing institution in the Sultanate, is a key partner in spearheading the nation’s economic and social development.

ODB strives hard to foster the nation’s development by actively participating in the government’s concerted efforts to enhance economic and social development. ODB is a leading financial institution to the small and medium enterprises (SME) sector, providing financial assistance for a range of development activities as well as working capital finance to private enterprises.

In addition, the Bank also acts as an agent for (i) distribution and collection of Government soft loans, (ii) disbursement of amounts from the Agriculture and Fisheries Development Fund and SANAD Fund loans.

Apart from its operations at head office in Ruwi, Muscat, ODB has 14 branches and 2 regional branches spread in different geographical area of the Sultanate.

What are the products/services offered by ODB?

ODB offers Development loans, working capital loans , seasonal loans for agricultural sector, etc. It accepts term deposits under ‘Izdihar’ saving scheme.

How much interest rate does ODB charge?

Loans are offered at a subsidized interest rate of 3% per year on reducing balances. It has also scheme of interest free loans to small investors seeking loan up to RO 5,000 with separate eligibility criteria.

What sectors does ODB finance?

  • Educational Institutions
  • Agricultural and Animal Wealth
  • Fisheries Projects
  • Industrial projects
  • Tourism Projects
  • Professional offices
  • Small Workshops
  • Traditional crafts

Does ODB finance for trading or real estate activities?

ODB does not finance ventures in trading, real estate development, contracting, etc.

What is the maximum loan amount for ODB?

Bank offers loans up to RO 1 million per project.

What maximum percentage of the fixed asset’s cost does ODB cover?

ODB finances a maximum 50% of total investments for projects located within Muscat Governorate , and up to 56%, if the project is located outside Muscat Governorate

How long is the repayment period?

The repayment period can go up to 10 years

Is there any grace period?

ODB offers grace period not exceeding half the period of repayment of the loan. The grace period depends on the nature of project and its expected cash flow.

Is there any payment during grace period?

Customer should pay only interest at 3% per year of outstanding amount during grace period.

Do Do I have to offer any collateral against the loan?

ODB has developed an Internal Credit Scoring Model for borrowers based on expected loss model to assess the lending risks using methodologies of international standards. This model enables the bank to assess the probability of default and expected loss and to identify the kind of collaterals/ guarantees required that from borrowers in a transparent and fair manner.

What types of securities can be offered?

  • Fixed Term Deposits with a bank
  • Bank Guarantee
  • Government Development Bonds
  • Shares listed in Muscat Securities Market
  • Personal/Corporate Guarantee
  • Mortgage over Freehold Property
  • Mortgage over Property in Leasehold land
  • Joint Registration over Assets
  • Commercial Mortgage on Assets
  • Mortgage over Property in Industrial Estates

Where should I submit my loan application?

If the loan amount sought is up to RO 50,000, our branch office where the project is located has to be approached. Loans above RO 50,000 are handled at our Head Office in Ruwi, Muscat.

Where What is the loan approval process?

Receipt of Application: Receive Application First Interview Recommendation
Evaluation of Application: Evaluation of Application Risk Evaluation Recommendation & Presentation Approval
Documentation & Disbursement: Collateral Documentation Agreements Disbursement
Follow up: Follow up Repayment

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