Connect with us

Bad Credit

Loans Bad Credit Online – UAE expats: How to pay the rest of your pending loans after you repatriate back home? | Fintech Zoom



Loans Bad Credit Online – UAE expats: How to pay the rest of your pending loans after you repatriate back home?

UAE expats: How to pay the rest of your pending loans after you repatriate back home?
Image Credit: Stock image

Dubai: When leaving the UAE with un-cleared debts, one must cautiously ensure that one keeps track of any unpaid dues and settle them as quickly as possible to stay clear of adverse consequences.

Borrowers or debtors are legally and morally obliged to paying their debts to the lending institution, but during times of hardships, debt settlement can turn out to be the last option.

When a person in debt is unable to make payments due to financial instability there are still options available. They can reach out to their banks to find a common way out, which is an agreement on the repayment scheme. But let’s first walk through some frequently asked questions.

Can I repay my UAE loans after leaving the country?


If circumstances force you to leave the country and move back to your home country, should the fact that you have outstanding loans in the UAE stop you from repatriating?

Contrary to popular belief, lawyers confirm that you are not obligated to pay off all your loans when exiting the country and those who are looking to return home have options for leaving whilst still in debt.

As a borrower, you are not legally expected to live in the UAE while your loans are not yet fully paid. Moreover, you are permitted to exit the country as long as no police cases or travel ban has been put against them. So, payments can be made while they are outside of the UAE.

While owing debt may not be a process that stops at the border, keep in mind repercussions to defaulting on your loans after leaving the country is a more serious and stressful affair compared to those defaulting while still in the country – and that can lead to you having a legal case lodged against you.

The reality is banks prefer to have clean balance sheets and want their customers to have a healthy credit report; therefore, it is very unlikely that banks refuse settlements as long as the debtor has a clean record.

What do UAE banks look at when settling unpaid debt?

If you are struggling with repayments of personal loans, education loans, etc., there are a list of factors that banks consider when settling bad debts in the UAE.

What is first factored in when settling loans is your ability to repay the loan or what is referred to as your ‘payment capacity’. Banks will also take into consideration changes in the personal circumstances of the borrower from the time he made the loan and his present financial state.

Other factors that will be considered in negotiation include your present salary, possibility of having a co-borrower or guarantor, history of any bounced cheques, assets in the UAE and/or home country, maintenance needs of the family, current residence – whether in the UAE or elsewhere, health and age.

Banks will also consider your payment history, present earning capacity (as well as your spouse), flag if any case has been filed against you for bounced cheques and any other personal circumstances. All these factors play an important role in the negotiation.

It’s crucial to note that banks will offer more leeway if you have a good payment history. You can even request for a suspension of payments for a couple of months.

On the legal side of things, your lawyer will also check if the lending institution followed the UAE Central Bank regulations when it granted your loans, did it loan you more than what you could pay – these are some of the questions that will be weighed.

Debt repayment strategy: No one size for all

It is often reiterated by debt restructuring specialists that there is there is no “one strategy fits all approach” in debt settlement or consolidation as each and every case is unique.

Options like one-time settlements and long-term payment plans based on the repayment capacity of customers are explored, subject to the rules and regulations of the lending institutions.

Debt consolidation is dependent on the credit policies of the banks, which are getting stringent given the current market conditions.

Won’t the insurance company pay off my loan if I lose my job?

No, and it is a very common misconception a lot of borrowers have that the insurance company will pay for their loan during a dire situation. If it’s the insurance company that pays for your loan in the UAE then the insurance company will enforce the right of the financial institution to collect it from you.

Insurance companies will pay only the minimum amount due for a specified period. As per the law, terminations or resignations are not considered as a factor for coverage.

An important thing to remember is that you need to file your claim and it is not an automatic process, hence once you are repaying an outstanding debt it is your duty to contact the insurance provider and initiate the process.

How can I repay my loans in the UAE, post repatriation?

As no one strategy fits all the cases, one should consider multiple available options like one-time settlements or long term payment plans based on repayment capacity.

The primary objective of banks is to provide a strategic repayment plan to enable their clients to become debt free. Banks are often supportive when it comes to understanding the issues that clients have been facing especially if the root cause is job instability, unexpected medical expenses, etc.

Getting involved in the repayment plan will help you repay your debts although there are some legal and financial repercussions associated with it. Debtors should be aware of the fact that banks are governed by guidelines imposed by the law. So it is always the judiciary that makes the final call.

Contact the collections department of the bank you have a loan with and formally apply for settlement. With proper understanding about the various factors that are considered by the banks, mentioned above, you don’t need to worry about your debts, just finding a repayment plan that best suits you.

Analysis show that most settlements end up with the borrower paying back the principal amount to the bank, having the interests, penalties and surcharges waived.

However, there have been circumstances, when the negotiation reaches an impasse, which happens when a bank will not accept the offer of the debtor and the debtor is not in the position to take the bank’s offer.

It is in such instances, lawyers intervene and look at the reasonability of the offer, while aiming to balance the commercial interests of the bank and the civil rights of the borrowers. It is advised that you take the help of a UAE-based lawyer when facing such a predicament, right from the very beginning.

Loans Bad Credit Online – UAE expats: How to pay the rest of your pending loans after you repatriate back home?

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Bad Credit

Early Termination of a Car Lease



If you’re leasing a vehicle in order to save money, but are thinking of terminating your lease contract early, you may want to think twice. Leases aren’t always as easy or as affordable to get out of as auto loans.

Can You Terminate Your Car Lease Early?

In most cases, you can get out of an auto lease early, but you may not be able to do it cheaply.

Leasing typically comes with fees both at the beginning and end of your term. However, if you need to get out of your lease early, there may be early termination fees (ETF), making the cost more than you bargained for.

Additionally, lessors often require you to pay all your remaining lease payments in one lump sum before releasing the contract early. Costs involved with getting out of your car lease early may also include:Early Termination of an Auto Lease

  • Excess mileage charges
  • Wear and tear fees
  • Any taxes not yet collected
  • Any negative equity
  • Storage and transport fees
  • Pay the cost of sale preparation

Check your lease contract to see if your lessor has any charges for terminating your lease early, or if there are stipulations that prevent you from getting out of the contract before a certain time. Even if there are extra fees imposed on you for returning your leased vehicle early, it might be easier to terminate a lease nowadays than it’s been in the past.

Since the pandemic, many dealerships and lenders have pushed into the digital realm to get business done. This includes video conferences to meet with dealers that typically needed to be done in person in the past. Of course, your vehicle still needs to be turned into a franchised dealership to be inspected and processed before a leasing company allows you to terminate your lease contract early.

Is it Worth it to Terminate Your Lease?

The first step is to look at your leasing contract and see if you even can get out of your lease early, and how much it’s going to cost you in ETFs. Then, you need to gather the following information:

  • Your monthly lease payment amount
  • How many payments you have left on your contract
  • The residual value of the vehicle

To figure out a good ballpark figure for getting out of your leased vehicle early, add together the cost of your remaining lease payments and any ETFs. To see if it’s worth it, compare this figure with the buyout price at the end of your lease, and find out what the current market value of the car is by checking sites like Kelley Blue Book and NADAguides.

Depending on how close you are to the end of your lease term, if the buyout price on the vehicle is significantly lower than the early termination price, it may be a good idea to wait it out. Then, once you buy out your lease, you can trade in the car for something else.

If you decide not to wait, how you handle getting out of your leased vehicle early could depend on the difference between the current market value of the car and the residual value of the vehicle as predetermined in your leasing contract. If the car has more value than the lessor predicted, you may be able to sell it for enough to pay your way out of your lease early.

Three Options for Terminating Your Lease Early

If you’re looking to get out of your lease early, for whatever reason, you typically have three options:

  1. Sell your leased car to a dealer – Selling your leased car to a dealer is similar to doing a trade-in, except they pay off your lease contract, including the early termination fees. It’s typically a pretty easy process, especially since used vehicles are in high demand since the pandemic. You may be able to get a little more for a car that’s coming off a lease since the turnaround time on a sale is likely to be shorter, depending on demand. If this is the case, you may even be able to walk away with some cash in hand depending on if the dealer’s willing to pay more than the lessors estimated residual value on the vehicle.
  2. Have someone else take over your lease – Lease assumption isn’t always something you can do, but in many cases, you can transfer your lease to someone else, as long as they meet all the lessor qualifications and there’s equity in the vehicle.
  3. Lease buyout – With the demand for used vehicles at affordable prices up right now, you may be able to buy out your lease then sell the car privately as long as you get enough money to make it worth your while. If you can’t come close to selling it yourself for the amount you need to pay off your lease, including ETFs, it may not be worth it to try and get out of the vehicle early. Most leasing companies allow for some form of early lease buyout, but again, it may cost you those extra fees.

If Leasing Isn’t for You

Now that you’ve figured out whether it’s worth it or not to get out of your lease early, it’s time to decide what to do next when it comes to getting a vehicle.

If you didn’t mind leasing but the car just wasn’t for you, you likely have the option to swap into another lease on a different vehicle with the same company. Many lessors contact lessees toward the end of their contracts to see if they’d be willing to get into another car lease early.

However, leasing isn’t for everyone. If you found that the restrictions that come with it such as the mileage limitations, or cost of maintenance and repairs are too much for you to handle, it may be time to consider an auto loan for your next go-round. If this is the case, Auto Credit Express wants to get you started on the path toward your next vehicle.

We’ve gathered a nationwide network of special finance dealerships that are signed up with lenders to help people with credit challenges. Whether you’re just not sure where to start or you need a little help due to bad credit, start here. By filling out our fast, free, no-obligation auto loan request form, you’re taking the first step toward finding your next car loan without all the hassle of searching. Get started right now!

(function(d, s, id){ var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) {return;} js = d.createElement(s); = id; js.src = ""; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk'));

Source link

Continue Reading

Bad Credit

GSB focuses on social responsibility



State-owned Government Savings Bank (GSB) has focused on providing loans to people without a record in the National Credit Bureau system or with bad credit over the last year to help those impacted by the pandemic deal with unprecedented economic hardship.

GSB president and chief executive Vitai Ratanakorn said the bank has extended loans to people with no credit history who have never borrowed from commercial banks or non-bank institutions.

He said the bank had already provided 1.5 million loans to members of this group of people.

The bank has also provided loans to 200,000 people with bad credit records.

Mr Vitai said the lending was aimed at drawing those outside the credit bureau system into the system and enabled them to get access to the loans, which was one of the main roles of state-run banks. This lending has been supported by the government.

He said this lending was not aimed at seeking profit as GSB charged a low monthly interest rate of 0.1-0.3%. For example, if the bank provided a 10,000 baht loan to a person under this scheme, it would only gain interest income of around 120 baht per year.

In addition to its objective of becoming the country’s genuine social bank, GSB’s other goal this year is to prevent loans from becoming bad debts, he said. The bank will rush to help customers in danger of accumulating bad debt to restructure before it reaches that stage.

Mr Vitai said GSB will not focus on growing its loan portfolio during the first six months of the year, but on serving the state’s policy of helping people and business operators cope with the impacts from Covid-19. Grassroots people and small and medium-sized enterprises are suffering the most from the pandemic, he said.

Source link

Continue Reading

Bad Credit

How to Start Over When You’ve Lost Everything



Upset women laying on the wood floor of her living room and petting her dog.

Image source: Getty Images

When you’re down to nothing, you have everything to gain.

People start over for many reasons, including job loss, divorce, illness, and business failure. Whatever the reason, if you’re starting anew, here are some steps to take in rebuilding.

Acknowledge the twist

Remember that you’re not starting from scratch. The fact that you’ve lost assets means that you had assets to lose. Whether that’s a retirement account, home, or business doesn’t matter. You know what it’s like to work for — and achieve — something. You did it once; you can do it again.

Establish credit in your name

If you don’t have much credit in your name, establish your own healthy credit file by taking out small amounts of credit and paying them off like clockwork each month. If your credit score has taken a hit, apply for a credit card for people with bad credit, use it to make small purchases, and pay it off each month before the bill comes due. Or you might ask someone you’re close to to add you as a user on their credit card. Your credit score gets a boost each time they make a payment, even if you never touch the card yourself.

Invest right away

The sooner you begin, the faster you can recoup losses. Maybe you can’t invest as much as you once did. That’s okay. Something is better than nothing, and you can add to your investment pot over time. The more time compound interest works its magic, the better. Every dollar helps, whether you plan to retire in 10 years or 30.

If you’re employed by a company that matches a percentage of 401(k) contributions, do whatever you can to contribute at least that much. The matching funds are basically free money.

Let’s say you earn $60,000 annually, plan to work 15 more years, and your employer matches up to 5% of your contributions. Here’s how much you’ll have put away with just your 5% on its own:

Annual Income

Percent Contributed

Amount Contributed

Average Annual Rate of Return

Time Until Retirement

Value At Retirement



$250/month, before taxes


15 years


Since your employer also matches that 5% of your income, you’ll have $150,774 instead.

If you were to raise your pre-tax contributions to 10%, here’s how it would look instead:

Annual Income

Percent Contributed

Amount Contributed

Average Annual Rate of Return

Time Until Retirement

Value At Retirement



$500/month, before taxes


15 years


Including the additional 5% contributed by your employer, you would have $226,161 at 15 years. It’s not a fortune, but could be very helpful. By the way, if you don’t touch it for 20 years, that nest egg would be worth nearly $369,000. If you don’t plan to retire for 30 years, it will be worth more than $850,000.

If you’re not with a company that matches contributions, find a brokerage firm that supplies the level of education and direction you’re looking for and get started.

Get professional help

After financial trauma of any sort, it’s tempting to invest aggressively. While in some circumstances it could be an effective way to make up for losses, it may not be the best move if you’re closing in on retirement. Consider working with a financial advisor, even if it’s on an hourly basis and you pay only for their time helping you come up with a smart investment strategy.

Postpone Social Security

One thing my husband and I (and many of our friends) have done is raise the age at which we expect to retire. We don’t see it as a sad thing. I never want to stop working, and now that my husband is in a job that tickles him, he’s not in a hurry either. The minimum age to retire is 62, but if you can wait until you’re 70, you max out your monthly Social Security payments.

Find support

Millions of people have made money, lost money, and started over. Chances are you already know a few people who’ve redesigned their lives from the bottom up. Talk to them. Ask them what they learned from the experience. If they had it to do over again, is there anything they would change?

People who experience hardship often have the best stories to tell and are often an excellent source of inspiration. It may not be easy now, but with luck, you can look back one day and say, “Hey, I did okay — despite the unexpected setbacks.”

Top credit card wipes out interest until late 2022

If you have credit card debt, transferring it to this top balance transfer card can allow you to pay 0% interest for a whopping 18 months! That’s one reason our experts rate this card as a top pick to help get control of your debt. It’ll allow you to pay 0% interest on both balance transfers and new purchases until late 2022, and you’ll pay no annual fee. Read The Ascent’s full review for free and apply in just 2 minutes.

Source link

Continue Reading