Questions & Answers
Defaulting on the payment of a bank loan and legal consequences
Hi,
This is M.
I have an outstanding loan amount of AED 48,000 from a bank. I took a loan of 65,000 AED almost 1 year and 6 months back from a bank in a Dubai branch. Now, due to job loss, I am not able to pay the outstanding.
I want to know what can the consequences be and what will happen if the bank files a case in Abu Dhabi, although I took the loan from their Dubai branch.
Dear M.
Thank you for reaching out to me on this.
I understand you have defaulted on the payment of dues and the bank may bounce your security cheque and file a police case against you.
In an ideal situation, the bank should file the case where the cheque was provided which I assume is Dubai since you took the loan from there.
However, if the bank decides to file the case in Abu Dhabi then I would advise that you hire a legal representative to clear your case.
As you can face the penalty of imprisonment, it is ideal to let a lawyer deal and request for judgement in fine.
You can get in touch with me on 052-9495731 or email for further assistance and clarification.
I trust you will find this helpful.
Regards
Hari Wadhwana
