What does the law say? Read this before you take a bank loan in Dubai
Bank can take action against you if you default on a bank loan. That is why, it is seriously important to know all about how the bank loan law in Dubai works, before applying for a bank loan.
Usually, a bank will grant you a loan only if your salary is more than 5000AED. This is the lowest minimum amount. But there are banks like HOBC that ask a monthly salary of 7500 AED to make you eligible for the bank loan.
Once you become eligible for the loan you can take it on your credit card. If it is more than a set limit provided by the bank than you will have to provide security i.e. papers of the house, gold or any other stuff that will guarantee that you will return the loan.
Bank loan law in Dubai:
The loan is taken against an interest rate that must be paid in monthly installments with-in a prescribed period.
According to the Bank loan law in Dubai, the payment should not be defaulted more than three times. If a debtor defaults more than three times on his loaned amount, the bank can file a case against him.
If such scenario happens, then the debtor will have to show that he cannot pay the amount in front of the public prosecutor. The prosecutor will then either ask him to pay a bail (kafala) or put him in jail until the court decides his fate.
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