Bank loans: Debt and disaster

An acquaintance obtained a personal loan from a bank in the UAE and failed to repay it within the scheduled period, defaulting even on the monthly installments.

By (Devarajan Ganesh, Sharjah)

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Published: Sat 15 Feb 2014, 11:09 PM

Last updated: Fri 3 Apr 2015, 6:22 PM

The defaulter’s habitual practice was to borrow money from colleagues and never return it without their nagging him for it. Banks have no idea about the character of the people who approach them for loans. Sometimes, they do not even see whether the person has the capacity to repay the loan, how long he has been in service, or how many credit cards he has. They require only a salary certificate and bank statement. Based on that, they release the loan. But they have an ace. If you fail to repay the loan, they will use it without stepping out of their office.

In this case, the bank finally lodged a complaint with the immigration department. As a result, the borrower was unable to renew his visa without clearing his debt. So now he is living as a fugitive. When you apply for a loan for whatever reason, first carefully consider how to repay it.

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