Settlement with the bank for defaulting on a loan due to COVID-19

Hi,

I have an outstanding loan with 97000. I have been always paying and have a good history with the bank.

The loan was given with a salary guarantee from my company. I work for a reputable airline, however, I was just notified a couple of days ago that I have been made redundant due to the pandemic.

I understand the bank will seize my end of service gratuity. That will leave me with around 70000 outstanding. Based on the current market situation it will be hard to find a job on time.

I have an official letter from my company with the reason why my contract was terminated, although my contract is auto-renewal. I have a few questions, if I may.

1- Since I haven’t missed a payment before, when does the bank issue a travel ban?

2- What are my options at the moment? I won’t be able to repay the outstanding unless I find a job.

3- What kind of legal action can the bank take against me?