Questions & Answers
Settlement with a bank regarding the instalments of a commercial loan
A bank offered and granted a loan of AED 500,000 to our company in June 2019. All instalments were being paid till Feb 2020 after which our business suffered a considerable setback due to COVID-19.
Luckily, the bank offered deferment of instalments for 6 months that have ended now but our business hasn't picked up yet and we may not be in a position to pay instalments until we get back on level as before.
Kindly inform us of the consequences if we fail to pay the installments.
Regards
S. S.
Dear questioner,
In the event of default, the bank will present the security cheque and a criminal case will be filed against the manager of the company (if the cheque is returned unpaid).
Further, the bank will file a civil case against the company in order to recover the pending amount.
If need be, kindly contact us by phone for a detailed discussion or write us at our email for further assistance.
