An increasing number of people are facing difficulties in paying their personal loan installments in the UAE, which leads them to resort to the idea of leaving the country to escape the financial problems that ensue. However, it should be noted that such an option carries serious consequences for borrowers and should be avoided as much as possible. In this article, we will go through the details of the problem and provide a solution.
Challenges facing borrowers in the UAE
When borrowers turn to personal loans, the goal may be to solve financial problems or invest in a promising business venture. However, they may not be aware of the legal ramifications of not repaying the loan in a timely manner. Here are some of the challenges that result from non-payment of loans:
1. Custody of the absconding person
The country may enforce extradition agreements, so a borrower who tries to escape outside the UAE can be detained and handed over to the UAE authorities to face justice.
2. Financial and legal penalties
The borrower's name may be placed on the banks' blacklists, preventing them from obtaining new loans or traveling abroad. Other penalties can also be imposed on the borrower, such as the prohibition of commercial and commercial activities and the seizure of property.
3. Seizure of the property
UAE laws allow the government to seize the property of the loan evader in his country of origin, including real estate, cars, and bank accounts.
4. Imprisonment
Banks may impose prison sentences on loan evaders, which can be up to several years in prison.
