Questions & Answers
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?
If you miss the payments, the bank will file a case against you. But in your case, it's better to make a settlement with them.
Please contact us on phone or email.
Dear questioner,
The banks will initiate a travel ban after 3 or more than 3 months of default.
Banks can file criminal case (with travel ban) and civil case against you to recover the outstanding.
If need be, kindly contact us by phone for a detailed discussion or write to us at our email for further assistance.
