MPs Push to Cap Retiree Loan Repayments at 10% of Pension

TDT | Manama
Email : editor@newsofbahrain.com

Parliament will debate a proposal to limit retirees’ loan repayments to 10% of their pension, a move the Housing Ministry warns could strain government-backed housing schemes and shift costs onto Eskan Bank.

Lawmakers argue that the current 25% deduction leaves many pensioners struggling, especially those on minimum pensions who spent their working years earning low wages.

The proposal, led by MP Bader Al Tamimi and four others, has been endorsed by the Public Utilities and Environment Committee.

“Retirees shouldn’t have to choose between paying loans and affording basic necessities,” Al Tamimi said. “Many worked for decades on modest wages and now receive the bare minimum. Their repayments should reflect their financial reality.”

The Housing Ministry, however, cautioned against the plan, emphasizing that housing loans are already subsidized and capped at 25% of a pensioner’s income. It highlighted that land and infrastructure costs are fully covered by the government, and existing policies already allow struggling retirees to apply for payment delays under Article 78 of Decision No. 909 of 2015.

The ministry warned that reducing repayments further would shift financial burdens onto Eskan Bank and the Housing Ministry, potentially impacting future housing projects.