Questions & Answers
Non payment of a loan EMI and legal consequences
I have a loan from a bank of AED 190000. It's been a year. I lost my job in the month of October 2018. Till March 2019, I was paying EMI.
Starting this month, I am not in a position to pay. I went to the debt collection dept to reduce my EMI, but they're asking for an offer letter from the new company to reduce my EMI.
What is ur advice on this?
Note: I missed one month EMI last Dec 2017.
Dear Sir/ Madam,
Thank you for reaching out to me on this.
Please note that if you default further, then the bank will bounce your security cheque which you must have furnished while taking the loan, and this would result in a police case.
If the cheque bounced is below AED 200K, then you will have a penalty by the way of fine and not imprisonment.
You can pay a fine and get clearance, however, this will only result in police clearance and not extinguish your debt. the bank can file a civil case against you to recover the amount.
In the meantime, I would advise you to continue negotiating and if a case is filed, then appoint a legal representative to clear your case.
You can get in touch with me on 052 9495731 or email for further assistance and clarification.
Regards,
Hari Wadhwana
