Questions & Answers
Outstanding loans in the UAE while the person is not a UAE resident
Hi,
I worked for 13 years in the UAE and I have an excellent record with the bank. The company where I worked shut its operations effective Dec 31, 2019.
I was lucky however to have found a job in Bahrain where I am currently residing. I have a personal loan and an outstanding of about AED 300 000.
With my current salary in Bahrain, I am not able to pay the full monthly installment which currently is about AED 18 000 since my salary in Bahrain is 43% less than that of the UAE's.
I have not defaulted so far, I have kept some money at the bank and I wired an amount from Bahrain, but at the end of this month, I will not be able to pay anymore the full amount.
Is it fine if I pay half of the amount on a monthly basis? If I do this, will the bank still file a case against me?
I have contacted and emailed the bank countless of times to restructure the loan, but since I do not have a UAE resident visa, the bank is rejecting this possibility.
Please could you clarify the legal part of this dilemma?
Thanks!
Dear questioner,
Banks may only accept your request for the restructuring of your loan amount if you have a valid UAE visa.
One of the possible reasons behind that is they can make amendments in your repayment plan and loan agreement and, in case of a person's default, an immediate action may be taken.
In your case, you may appoint a lawyer here in the UAE to conduct renegotiations with the bank on your loan repayments as there is a bright chance the bank may reconsider all the available options.
You may contact us via phone or email for more details.
Best Regards,
Jassim Ali AlHaddad Lawyers and Legal Consultants.
