Questions & Answers
The gratuity is not enough to cover the loan. What to do?
I am 58 years old working in Abu Dhabi. I am terminated from my work due to redundancy. I have a bank loan and my end-of-service benefit is not enough to cover my loan balance.
Is it possible for my gratuity to cover my monthly payment to the bank until such time I could find another job?
Are bank loans covered by insurance?
If I could not find a job and I cannot pay my loan balance, will I go to jail?
Please advise on how to settle my loan with the bank.
Dear questioner,
Thank you for contacting me!
It is a practice of the banking industry to hold the end of service benefits if they have an outstanding balance to recover towards credit cards or loans.
However, I strongly recommend you approach the bank and discuss your concern in detail. They can suggest a way out and any such resolution will be solely based upon their private policies.
Regards,
Rajasree Ravivarma
