Foreign loan repayment Morocco MRE rules explained

Returning permanently to Morocco obviously does not eliminate the monthly payments of a loan taken out abroad. But their payment from the Kingdom requires a foreign exchange outflow, subject to the rules of the Office of Exchange. However, not all former MREs have the same possibilities.

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Moroccan banks can settle the remaining amount owed for a consumer credit taken out abroad, but only when the borrower has declared their assets and liquid funds held outside Morocco in accordance with law 63-14 and its implementing texts.

This law concerns Moroccans residing abroad who transfer their tax residence to Morocco. Simple proof of former residence abroad is therefore not sufficient: repayment of consumer credit from Morocco is linked to the completion of this declaration.

Return is not enough

The rule may surprise a former MRE who normally took out a car loan, personal loan, or credit to finance a current expense in their former country of residence. Once settled in Morocco, they cannot assume that their Moroccan bank will automatically be authorized to transfer the monthly payments to the foreign lender.

The system presented by the Office of Exchange requires several documents. The former MRE must provide a copy of the credit contract, the amortization schedule showing the remaining amount owed, and a document proving that they resided abroad at the time of subscription.

In case of early repayment, a certificate from the lending institution specifying the installments to be paid is also required. The Moroccan bank must thus be able to verify the existence of the loan, its residual amount, and the borrower’s situation at the time of its conclusion.

Student loans are subject to a different regime. Banks can repay loans taken out by Moroccan students from foreign institutions when they were used exclusively to finance studies abroad. The contract must specify this purpose and be accompanied by the amortization schedule as well as enrollment certificates covering the years financed.

The distinction is important. A former student can therefore have the balance of a genuine study loan settled from Morocco, provided they produce the required supporting documents. For a simple consumer credit, however, authorization is reserved for former MREs who have declared their assets and liquid funds abroad under law 63-14.

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The Office of Exchange clarifies that the settlement may cover the remaining amount owed. This is therefore not a new financial aid granted upon return, but a facility given to the Moroccan bank to purchase and transfer the foreign currency necessary to repay a debt already contracted abroad.