Bankers: the most prominent of which is the reservation of the end of service bonus ... and the delay of installments for a period of 3 months

6 actions taken by banks towards borrowers in the event of terminating their services

Some banks lift the reservation on the end of service gratuity if the client obtains a new job.

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Bankers said that banks take six basic measures against borrowing clients whose services are terminated, most notably the reservation of an end-of-service bonus, delaying installments for a period of three months, and deducting the security amount from the value of the loan in the case of credit cards, if the customer has insurance against leaving work that covers part of Indebtedness for a specific period as agreed upon.

They explained to «Emirates Today» that if the client succeeds in obtaining a new job, then some banks lift the reservation on the end of service reward, while others take it completely under the pretext that the new job does not have a large end of service reward for taking it as a guarantee beside the salary.

They added that if the client is unable to obtain a job within the three-month period, the bonus is deducted from the remaining balance of the loan, while some banks reschedule the rest.

Installment postponement

In detail, the banker, Tamer Abu Bakr, said that “banks usually allow the client who borrows a personal loan after terminating his services, the opportunity to search for another job for a period of three months in which the monthly installment is postponed in exchange for the full end-of-service reward reservation.” A new job, some banks lift the ban on the bonus, while others deduct it in full, under the pretext that the new job does not have a large end-of-service reward for taking it as collateral alongside the salary.

He added, "The end-of-service reward is the only guarantee, if the source of income is only from the job, so banks look at the number of years the borrower has spent in his work, and from here some banks prefer to deduct it from the remaining balance of the loan."

Reschedule

And Abu Bakr indicated that "if the client is not able to obtain a new job, the banks will reschedule, in a way that reduces the installment and reduces a percentage of the interest, but does not drop the loan."

He added, "If the customer is unable to pay after three months, the deadline for delaying the installment, a lawsuit will be filed against him and prevented from traveling."

credit cards

For his part, the banker, Mustafa Ahmed, said: “Bank loans are not forfeited, and collection departments continue to follow up on the customer whose services have been terminated until he provides the bank with evidence that he has obtained a new job and completes the payment of what he owed from his new salary, or he is given a three-month period to arrange the method of payment. From any other source of income or assets he has he can sell and dispose of its money ».

He explained that "this procedure is taken by banks with regard to personal loans. As for credit cards, legal action is not taken until after the customer stops paying for three consecutive months or 180 intermittent days, and sometimes there is insurance that covers part of the payments for a specific period as agreed upon." .

Real estate financing

In turn, the banker Muhannad Awni said: “Real estate financing is usually guaranteed away from the customer’s income, if he is an employee and used to pay from his salary and then his services were terminated, as in this case the bank manages the property and pays the financing from the income that comes from it.”

He added that «the client is not entitled to exercise his rights over him except after paying the full debt, or agreeing to return the payment if he obtains a new job».

The Six Actions

- Reservation of the end of service gratuity.

Postponement of installment for a period of three months.

Deduction of the security deposit from the loan amount for credit cards.

Scheduling the loan to reduce the installment.

Filing a lawsuit if the customer stops paying and is prevented from traveling.

Seizure of the property and its management in relation to real estate financing.

• Bank loans are not waived .. and the collection departments continue to follow up on the customer.

• The end of service gratuity is the only guarantee if the source of income is from the job only.

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