Many ex-pat residents in the UAE take the loan for personal use or business because they all need money to solve the financial difficulties and pay it back in a small portion, particularly every month. Today in this post I will make you clear if you have this question about what will happen bank loan in UAE after termination of the employment contract.
Well, you know what? Loaning to a foreign worker in the UAE is a difficult decision taken by the UAE bank because it could fall into the risk at any time.
There is another problem if banks in the UAE don’t lend to foreign nationals who they loan because 90 percent of the UAE population is foreign nationals and how much they lend if they are only grand to the UAE nationals their population is just 10 percent.
When the high amount of credit goes to the foreign national UAE government’s financial policy against defaulters, it is also very tough. Financial issues with banks in the UAE consider that crime and the country’s criminal law will involve not civil law like other countries in the world.
What kinds of loans, UAE banks release to foreigners?
Banks of the UAE offer a variety of loan products to the foreign nations who have a valid resident visa and have regular income to repay the credit.
If you lose your job and your business does not make any profit, any type of loan you may liable can be the default.
Now let’s talk about this scenario whether you lost your job or your small business has bank-craft. the bank recovery team will not consider and compromise on your situation they will constantly follow to settle your liability.
Although you have lost the job due to the termination contract from the employers or yourself the bank will not take the aggressive action for recovery if you are able to pay the due installment in the time.
What action bank can take when you lost the job?
- Bank loan officers will request you to settle the entire loan unless you have got the opportunity in the new company
- Bank can request the immigration of the UAE to issue the travel ban against you out of the UAE.
- They can file the criminal case against you after bouncing the security Cheque that you might have signed a blank cheque on the day the loan was issued.
Bank loan in UAE after termination
The UAE financial regulation and the law also do not give the concession on the person who has lost the job. In any situation you may lose the job or not, you are responsible to settle the bank loan that you have owed.
What to do if you lost the job and can not settle the loan in the current situation?
- If you’ve managed to escape your country before the bank knows your condition, that’s another matter, but;
- When you’ve lost your job, don’t try to go back to your country if the bank already knows your situation and has followed you for settlement because you can be arrested at the airport and the case will take another model.
- Let them know your process if you have got the job in a new company or looking for that.
- Ask them to discount the interest if you think you can not pay that.
- Request them to differ the installment until you get some money from a previous employer as an end services compensation.
- Discuss with the loan recovery team and explain to them your plan to settle the loan.
- If you have done loan insurance seek assistance with the expert and apply for the insurance.
- If you’re going back to your country, also let your bank staff know. You don’t have a due installment, but you’re going to pay the monthly installment from your country they can allow you.
- Always think about solving the problem with the bank, do not engage in an activity that contributes to the escalation of the situation.
Wrapping up: UAE banks do not care whether you lost the job or have any issued with the current employer and have not gone for Duty. Always think about how to settle bank loan in UAE after termination of the contract with the employer.