UAE is one of the countries where foreign nationals who have a residence visa can easily obtain bank loans, but defaults can have negative ramifications unless they scaped from the UAE to their country. If you are in the situation of an unpaid personal loan in UAE, read these articles because I have tried to cover all the actions that the bank is taking against the defaulter in the UAE.
First of all, I would like to suggest that you do not misuse the credit that you owed to the bank because it is your responsibility to pay that money whether you are in the UAE or have already managed to flee your home country.
What types of bank loan can you apply for in the UAE?
Various loan products are available in the offer which may vary depending on the banks. Some of them I’ve displayed here will add some values;
- Personal loan
- Auto loan
- Housing loan
- Small business loan
- corporate loan and
- Credit card
- Student loan
Whether you have an unsettled credit card due or a general loan installment, the bank will take swift action against you to recover the money you owed.
When you have missed the loan payment schedule, the bank’s recovery staff and the partner agency will call you. They may warn you of the consequences if you can not settle within a given time-frame.
The bank will prevent you from leaving the country by filing a default report in the UAE Ministry of Immigration. If you try to go back to your country the police can detain you at the airport or other border points.
It’s the most headache of the UAE bank if the foreigners flee their country without paying the loan. Approximately Dh.70 billion loans are not settled in the UAE, which was lent to foreign nationals, and they are not in the UAE.
The bank will file a criminal case suit against you after bouncing the security Cheque that you have signed.
Bouncing the Cheque is a crime in the UAE that can lead to prison. Even though you are serving the sentence of bouncing the Cheque, it does not mean that you may not be required to pay the bank loan you owed.
You complete the sentence for bouncing the Cheque also the problem will not solve. Still, you need to pay the bank loan, including interest and late payment penalties. The bank can go for the civil case against you if you can not pay the loan although you have served the sentence for the dis-honoring the Cheque.
The case will hear in the civil court you will get the sentence for more than 5 years if you fail to pay the bank loan in UAE. After completing this sentence you are not required to pay the bank loan.
What will happen if you already in your country?
Legally the UAE bank has the time to recover the debt from the debaters up to 15 years, therefore, they will use every tool to recover the bad loan.
They can work with the loan recover agents in your country, if it happens you need to deal with the local recovery agents they could apply the harassed methods.
The UAE government is also working with other countries to bring the defaulter to the local court for a legal hearing. India already accepted the proposal so, if anyone has fled to India with unsettled bank liability from UAE, the UAE banks can file the case into local court in India.
In my opinion, whether you are in your country or the UAE, you must justify your action or be liable for legal consequences.
What bank can do others for an unpaid personal loan in UAE?
- You may be banned entering the UAE again.
- Can arrest at the international airport in Dubai, Abu Dhabi, and Sharjah if you are transition to another country.
- You can ban to GCC countries or detain from there. Entering those countries including; Qatar, Saudi Arabia, Bahrain, Oman, and Kuwait could be risky business.
- If the loan amount is more than a million then the bank can file the case to Interpol, there is a high chance of arresting in any country in the world.
Can the loan insurance cover unpaid personal loan in UAE?
The insurance agents and bank staff advise you to persuade the debt shield insurance, it will only protect you if you are disabled or died. In certain situations, you have lost a job or your company is going to run out of money the insurance will not apply.
AT the end: When we talk it is easy but facing the unsettle liability with the UAE bank is the much frustrating, so, if you have unpaid personal loan in UAE try to resolve it as soon as possible otherwise it can be the issue anytime and anywhere until 15 years.
The days will not go easily because the bank can hire the recovery agencies they will harrassed you and compel you to live in fear day by day.