Stuffed application form
In the UAE, when personal loan or a credit card facility facility is extended to the borrower, the personal loan agreement or a signed application form which includes terms and conditions is filled up and banks or financial institutions can collect cheques as security against the loan amount.
It will be mandatory to pay three consecutive instalments or six non-instalments
It is mandatory to pay three consecutive installments or six non-installments on repayment of your personal loans or credit card facilities.
All debts paid as soon as the loan is over
The Article 4 (4) of the Personal Loan Agreement format, approved by the Central Bank of the UAE, says that as soon as the loan expires, it is necessary to pay all installments, interest and any other fee without any notification or any court judgement and any other rights of the bank. In the event that if the borrower failed to pay three consecutive installments or six non-installments without monthly installments.
Therefore, the bank or financial institution from which you have availed personal loan or credit card, check your security for collection/collection. Can choose to deposit. Even if your bank account has insufficient money. Also, the lending bank or financial institution can lodge a criminal complaint against you.
Travel restrictions may seem
When a criminal complaint is lodged, a travel ban may be imposed against you. You will not be allowed to travel outside the UAE. If you do not pay after leaving uae, you may be detained if you re-enter the country.
However, if your security cheque amount is less than Dh200,000, the penalty can be a penalty, depending on the cheque amount, between Dh2,000 and Dh10,000. On payment of this penalty, the travel ban imposed due to cheque can be lifted.
May’s civil case filed
In addition, lending banks or financial institutions may file a civil case, based on the personal loan agreement signed by you for recovery of outstanding debts against you. If you are outside the UAE, they can file an application in court to detain you once you re-enter the country. You can consult the legal practitioner of uae to seek professional advice.
