Q: I have a bank loan. From this month onwards I won't be able to pay the EMI. I need your best legal advice to close the dealings with the bank… A: Approach the bank directly, either for a one-time settlement offer with a good discount [if you can afford it] or to request an affordable EMI plan…

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Rescheduling the EMI of a personal loan to avoid legal action

Hello Lawyer,

I lost my job in November 2018 and still searching for a suitable job here in the UAE. I have a bank loan for which an EMI is active.

Until last month, I managed to pay the EMI somehow hoping I will get a job. But so far, I am not lucky and from this month onwards I won't be able to pay the EMI.

I need your best legal advice to close the dealings with the bank in a smooth manner.

Awaiting your reply.

Rajasree Ravivarma

Al Nassar Advocates & Legal Consultants

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1 Apr 2019, 08:19

Dear Questioner,

Please approach the bank directly, either for a one-time settlement offer with a good discount [if you can afford it] or to request an affordable EMI plan. Please note that any such restructuring would affect your credit rating.

Please feel free to contact me if you need any further clarification on the above.

Thank you.

Regards,

Rajasree Ravivarma

1 Apr 2019, 08:49

Dear Lawyer,

Thank you for the reply.

However, I am not in a position to go for a one-time settlement as it would be higher even with a discount.

Also, as I am jobless now, I don't know how I will be able to pay an EMI.

If I fail to pay the EMI what are the consequences?

What would be the imprisonment period and other sentence?

Please give me an exact idea so that I can be prepared to face it. :-(

Thanks

1 Apr 2019, 09:03

Mr S.,

We are not sure whether the bank has already filed a criminal complaint against you or not.

If they are filing in any of the police stations in Dubai, and if the amount is less than 200k, there can be only fines issued as punishment.

I am not sure if you are in the UAE or in India at present. If you are in the UAE, please make sure there are criminal complaints against you before you travel out of the UAE to avoid apprehension.

Thank you.

1 Apr 2019, 09:11

Many thanks for the reply Ms Rajasree.

The bank would not have filed any complaints yet as I was paying the EMI until last month. I will be at fault only from this month onward.

My current outstanding is 206,308.00. You mentioned less than 200K, in that case, would it be advisable to pay one more EMI (I will somehow manage) and that will bring the amount to less than 200K.

I am in the UAE at present and I don't plan to travel out of the country unless I could sort this matter out.

Heartily appreciate your assistance on this issue.

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