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Frequently Asked Questions following closure of Habib Bank LimitedCentral Bank Seychelles approves closure of the Seychelles branch of Habib Bank Limited
1. THE CLOSING DOWN PROCESS
- Why is the bank closing down?
Habib Bank has started that its decision to close down is due to strategic reorganisation and increased focus on its core markets.
- When will the bank actually close down?
Habib Bank will officially close its branch in seychelles by the end of February 2019. However, clients have until December 28, 2018, to ensure that all funds have been withdrawn, loans have been transferred, and any other transactions with the bank has been finalised.
- Will there be an impact on other banks?
None of the other banks shall be impacted by the closure of Habib Bank.
- What does this mean for other foreign banks operating in Seychelles? Should I be worried as a customer?
As a customer of any of the other foreign banks, or even the locally owned banks, you do not need to worry. The decision to close Habib Bank was a strategic business decision of their Head Office. The decision does not provide any indication with regards to the Seychelles specifically, and thus cannot be used to suggest any similar decisions shall be taken by other foreign banks operating in Seychelles.
- Should I continue paying my loans with Habib Bank?
Yes. You have a legal obligation to continue paying the debt, for which the Credit Information System (CIS) captures repayment information. Failure to repay your loan would be recorded on the CIS and this may impact your ability to obtain credit facilities (e.g loans) from other institutions.
- What will happen to my loan a Habib Bank?
Your loan can be transferred to another bank and Habib Bank will contact you accordingly, or if you so desire you can apply for a loan from another bank or the Seychelles Credit Union and then pay off your Habib Bank loan.
- I want to clear off my loan with Habib Bank, is it possible? Will there be a fee?
Yes, it is possible to clear off your loan with Habib Bank and there will not be any early/ prepayment fee charged by Habib Bank.
- How do I transfer my loan to another bank? Can I transfer to any bank?
You can apply for a loan from another bank or Seychelles Credit Union and upon receipt of same pay off your Habib Bank loan. When your loan account is closed, it is advisable that you request a statement of account for at least six (6) months for your own record keeping and reconciliation purposes.
- Is there a cost associated with transferring my loan?
There may be costs if you opt to transfer your loan to your bank of choice. These costs will be from the new bank taking on your loan and be dependent on their terms and conditions. Habib Bank shall not be charging any fees or charges for the transfer of your loan nor will you incur a cost if your loan is transferred by Habib Bank to another bank. When your account is closed, it is advisable that you request a statement of account for at least six (6) months for your own record keeping and reconciliation purposes.
- Will the terms and conditions remain the same?
The terms and conditions vary across banks and clients are advised to negotiate with their new banks. This includes the interest rate, repayment period, etc. on the loan, which will depend on the new bank you opt to take the loan from.
- Will my loan be transferred automatically to my other bank or Seychelles Credit Union?
No, your loan will not automatically be transferred. If you opt to pay off your loan with Habib Bank through financing accessed from another institution, you would need to complete the due process with the other bank. Alternatively, Habib Bank will contact you with regards to the transfer of your loan to another bank.