Monday, 6 April 2015

Liable to repay loan even if job in UAE is LOST

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With regards to Loan repayment in UAE, it must be noted that the personal loans against an individual should be repaid on installment dates or settled irrespective of whether such individual has a job in UAE or not employed. This is applicable even if his job in UAE is lost.

UAE Loan Repayment Calculator
A person writes a Security Cheque for Personal Loan
What will you do if you have a bank loan, and lost the current job and not able to get another job in the validity period of the current employment visa.

Firstly you should inform your banker about the job insecurity and inform them that you will be unable to pay the loan installments.

In the above circumstances some legal procedures will be taken by the bank to secure the repayment of loan.

However, it should be noted that, prior to disbursement of loans, banks enter into detailed loan agreements with the borrowers. The terms and conditions will be written in this agreement for repayment of loan in the event the borrower loses his employment or any other source of income.

Usually under these circumstances, banks will try to invoke all the conditions for securing repayment of the loan set forth in the loan agreement in the event of a payment default which may include presenting of the security cheque issued by the borrower in favour of the bank against the loan along with any other securities provided by the borrower.

Further, you may talk with your bank and they may consider negotiating and settling for rescheduling of the loan repayment installments till you have another source of income. You may use a UAE Loan Repayment Calculator to find an installment schedule suitable to your budget.

This will happen based on the mutual understanding between the bank and the borrower, and also the policies of the bank on repayment of loans.

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