I signed up for a Dh270,000 personal loan 18 months ago and have been making the Dh6,528 monthly repayments on time ever since. I earn Dh15,000 as a quantify surveyor in Dubai, however I am struggling to find a good job opportunity to move to. Therefore, if I secure a big offer from an employer in another country I will consider moving. I plan to leave in about six to eight months but I still owe Dh193,000 on the bank loan. I borrowed the money to build a house in India and close four credit cards on which I owed Dh70,000 in total. I have no credit cards now.
If I left, could I deposit three months' worth of instalments into the account to cover the payments and then top up the account to pay off the remaining balance from overseas? Then, if I made all the payments on time, would the bank in the UAE still file a criminal case against me for leaving without paying back the debt in full? Also, once I am overseas how can I check if there is a case against me? I have also had interviews in the UAE where the salary is Dh30,000. If I secured that kind of salary, I would repay the debt within six months before eventually leaving the country. What is the best route to go about this? KT, Dubai
Debt Panellist 1: Philip King, head of retail banking at Abu Dhabi Islamic Bank
Firstly, you have made the correct decision to take out a loan to pay off your four credit cards, which typically charge a higher rate than a loan. In sticking to the repayment schedule for the last 18 months, you have also demonstrated to your bank that you can be financially responsible. Given this track record, and if you feel that you must move home later this year, you should have a conversation with your bank about finding a compromise in which you pay off a significant portion of the remaining sum before leaving, and then continue to make monthly payments from overseas. To support your application, take in your new employment contract and any other materials that demonstrate your ability and commitment to fulfil your repayment obligations.
The bank may not agree to this request as the amount you owe is still likely to be in excess of Dh100,000. Should you fail to make repayments in future, it would be extremely difficult for them to recover the outstanding amount from another country. However, if you have cleared it with your bank beforehand and have a letter confirming your new agreement, so long as your repayments remain current, the bank wouldn’t file a criminal case against you.
Overall, you should weigh up the cost/benefit of making such a move. Given the opportunity to secure a higher salary here, and one that may be twice what you currently earn, you need to evaluate what’s in your best long-term interest. If you can pay off all the debt, and then potentially save additional funds while in the UAE, there is a compelling argument for delaying your move for a couple of years. You can then move overseas debt free and in a position of financial strength.
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Read more:
The Debt Panel: 'Can my UAE bank file a case against me in India?'
How The Debt Panel changed lives in the UAE in 2018
The Debt Panel: Dubai couple want to consolidate their Dh285,000 liabilities into one payment
The Debt Panel: 'I fled the UAE in 2010 without clearing my credit card. How do I return?'
The Debt Panel: 'I can't control my credit cards due to multiple charges'
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Debt panellist 2: Keren Bobker, an independent financial adviser with Holborn Assets
The priority of any bank lending money is simply that repayments are made in accordance with the agreement between both parties. Before you take any steps, check the small print of the loan agreement to ensure there is no stipulation to repay the money borrowed if you leave the UAE.
A bank can only file a police case if a borrower has defaulted on a loan and you have no intention of doing this and have explained how you intend to keep making payments. If you do not miss any payments the bank will have no real cause to take action. It has become harder to check whether a police case has been filed against someone who has left as the police will generally no longer provide this information to third parties, unless they are an accredited lawyer. A new system has just been introduced that should allow individuals to check whether there is a case registered with Dubai police via their app or website but this is designed for residents so may not work for someone whose visa has been cancelled.
Be aware that if a bank knows that a borrower has a debt and is planning to leave the country there is a possibility they could apply for an immigration ban if they think someone will leave and not make any further payments. This would prevent you from leaving the UAE, but unless your loan agreement states that you need to be resident in the UAE and make repayments from a UAE salary, you should not be obliged to tell the bank you are leaving the country.
Once you leave your current employment the bank is likely to freeze your bank account as your current employer will mark your last salary payment as ‘final salary’. Any end of service gratuity and savings may be used by the bank to reduce the outstanding balance, however, actions vary between banks.
Provided it is not contrary to the terms of the loan agreement, I would not be inclined to tell the bank you are leaving the UAE, but strongly recommend contacting them as soon as you are in your new country to set up a repayment arrangement.
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Read more:
UAE residents can now buy credit reports via a mobile app
UAE credit reports to include rent, salaries and court rulings
Bank customers must submit their Emirates ID or face suspension
Start-up will help UAE residents borrow money they can afford to repay
A nine-step guide to help you renegotiate bank debts in the UAE
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Debt panellist 3: Ambareen Musa, founder and chief executive of Souqalmal.com
Since you're planning to leave your debt behind in the UAE, even though you intend to repay it from overseas, there's a high chance things may go in a very different direction. Your bank will be prompted to freeze your bank account when your final salary and end of service benefits are credited. This seems to be standard protocol among lenders in the UAE and the aim behind it is pretty straightforward - to recover loans from borrowers who may potentially abscond and leave their loans unpaid.
Hypothetically, it is possible to repay your loans from overseas. But unfortunately, the UAE banking industry has (in the past) witnessed struggling borrowers hightailing it back to their home countries leaving a debt trail behind. This has made lenders increasingly cautious.
Your best bet would be settling your loan the conventional way. If you're able to secure a high-paying job in the UAE, that would make your life a lot less complicated. You can focus all your income and energy towards repaying the debt as soon as possible, and then you'd be free to move on to greener pastures.
Let's consider the other options you have: you could use your gratuity and end of service benefits to partially settle the loan. To clear the rest, you could tap into your savings, take an equity release loan against your property back home or rope in close relatives to help you out with an interest-free loan.
It may be a good idea to speak with your bank and explain your situation and intentions to them. The bank may be willing to cut you a good deal by offering an interest waiver or reducing the settlement amount if you offer to make a lump-sum payment.
The Debt Panel is a weekly column to help readers tackle their debts more effectively. If you have a question for the panel, write to pf@thenational.ae
Jigra
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
How green is the expo nursery?
Some 400,000 shrubs and 13,000 trees in the on-site nursery
An additional 450,000 shrubs and 4,000 trees to be delivered in the months leading up to the expo
Ghaf, date palm, acacia arabica, acacia tortilis, vitex or sage, techoma and the salvadora are just some heat tolerant native plants in the nursery
Approximately 340 species of shrubs and trees selected for diverse landscape
The nursery team works exclusively with organic fertilisers and pesticides
All shrubs and trees supplied by Dubai Municipality
Most sourced from farms, nurseries across the country
Plants and trees are re-potted when they arrive at nursery to give them room to grow
Some mature trees are in open areas or planted within the expo site
Green waste is recycled as compost
Treated sewage effluent supplied by Dubai Municipality is used to meet the majority of the nursery’s irrigation needs
Construction workforce peaked at 40,000 workers
About 65,000 people have signed up to volunteer
Main themes of expo is ‘Connecting Minds, Creating the Future’ and three subthemes of opportunity, mobility and sustainability.
Expo 2020 Dubai to open in October 2020 and run for six months
About Proto21
Date started: May 2018
Founder: Pir Arkam
Based: Dubai
Sector: Additive manufacturing (aka, 3D printing)
Staff: 18
Funding: Invested, supported and partnered by Joseph Group
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Four motivational quotes from Alicia's Dubai talk
“The only thing we need is to know that we have faith. Faith and hope in our own dreams. The belief that, when we keep going we’re going to find our way. That’s all we got.”
“Sometimes we try so hard to keep things inside. We try so hard to pretend it’s not really bothering us. In some ways, that hurts us more. You don’t realise how dishonest you are with yourself sometimes, but I realised that if I spoke it, I could let it go.”
“One good thing is to know you’re not the only one going through it. You’re not the only one trying to find your way, trying to find yourself, trying to find amazing energy, trying to find a light. Show all of yourself. Show every nuance. All of your magic. All of your colours. Be true to that. You can be unafraid.”
“It’s time to stop holding back. It’s time to do it on your terms. It’s time to shine in the most unbelievable way. It’s time to let go of negativity and find your tribe, find those people that lift you up, because everybody else is just in your way.”
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
Company%20Profile
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Company%20profile
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Cry Macho
Director: Clint Eastwood
Stars: Clint Eastwood, Dwight Yoakam
Rating:**
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%3A%3C%2Fstrong%3E%20Eco%20Way%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20December%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Ivan%20Kroshnyi%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Electric%20vehicles%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Bootstrapped%20with%20undisclosed%20funding.%20Looking%20to%20raise%20funds%20from%20outside%3Cbr%3E%3C%2Fp%3E%0A
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EKinetic%207%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202018%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Rick%20Parish%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Clean%20cooking%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2410%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self-funded%3C%2Fp%3E%0A
SPECS
Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
On sale: Now
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Emergency phone numbers in the UAE
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
BLACK%20ADAM
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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Martin Sabbagh profile
Job: CEO JCDecaux Middle East
In the role: Since January 2015
Lives: In the UAE
Background: M&A, investment banking
Studied: Corporate finance