I need your support and guidance to help me settle a Dh450,000 personal loan I took out three years ago.
The term of the loan is four years, with monthly instalments of Dh10,703. In total, the loan comes to about Dh513,744 after factoring in the profit rate.
So far, I have paid 36 instalments totalling Dh385,000. There are only 12 equated monthly instalments pending, or a total of Dh128,500, which includes the remaining principal of about Dh65,000 and the profit rate of Dh63,500.
I am 54 years old and have recently lost my job; the company has provided me with a redundancy letter.
Is it possible to ask the bank to consider my situation and take the remaining principal amount from my gratuity and cancel the profit rate on humanitarian grounds?
I have to clear other dues that are pending in India and also need the money for further expenses, including leaving the UAE and finding another suitable job.
Will the bank consider my situation and give me some relief or will it deduct the whole amount from my gratuity? What do banks generally do in these types of situations? SM, Sharjah
Debt panellist 1: R Sivaram, executive vice president and head of retail banking products at Emirates NBD
I am sorry to hear about your job loss.
Firstly, I recommend that you keep your bank informed about your current circumstances and recent job loss and establish a proactive and continuous channel of communication with the concerned staff.
This will reassure the bank that you are taking your financial obligations seriously and show your commitment to repaying your debt.
In terms of your gratuity, you will need to refer to the terms and conditions of your loan agreement for more clarity on your rights and obligations in this situation.
Typically, loan agreements in the UAE include a clause that allows lenders to allocate gratuity payments towards debt repayments.
Once you have reviewed this, articulate to your bank your current financial obligations and request them to review what best can be done.
If you are comfortable with prepaying the full outstanding loan amount from your gratuity immediately, you would need to only make good the remaining principal amount without having to account for any profit rate-related payments, thus allowing you to use the additional funds against other expenses.
In case you are planning to stay on in the UAE and look for another job, you could also try coming to an agreement with your bank to pay a part of your loan by using a portion of your end-of-service benefits, but extend the period of the remaining amount due with a more favourable profit rate and a lower monthly instalment until you have secured new employment.
Finally, I recommend you try to keep costs and living expenses as low as possible while searching for a job. Consider also taking on a part-time or temporary job that will help to pay for your basic expenses.
I wish you all the best in arriving at a mutually agreeable solution with your bank, as well as finding new employment that can help you return to a stable financial footing quickly.
Debt panellist 2: Nathan McFarlane, founder of AskHelpWith.com
I do not believe you should be considering profit rates and principal amounts – the reality is that you agreed to pay the amount based on the terms and conditions of your loan.
However, banks are aware of the difficulties that many people are facing because of the Covid-19 pandemic and are willing to help wherever possible.
I recently had a conversation with a bank representative who said that many people in the UAE are currently having some form of financial difficulty because of the pandemic and it is affecting their credit scores.
The first thing you need to consider is which account your gratuity will be transferred to. In the event your gratuity lands in the bank with which your loan is provided, the entire amount will be frozen.
Typically, loan agreements in the UAE include a clause that allows lenders to allocate gratuity payments towards debt repayments
R Sivaram,
executive vice president and head of retail banking products at Emirates NBD
This may vary from bank to bank, so I suggest you speak to yours and find out its procedures.
You could ask the bank for a payment holiday under the Targeted Economic Support Scheme as you have proof of your redundancy. This should be a priority. Also ask the bank if it is possible to continue paying your loan on a monthly basis while you are looking for another role.
It is unlikely that the bank will freeze a portion of your gratuity and release the rest to you. I have very seldom seen banks be flexible purely on humanitarian grounds. I wish you the best of luck.
Debt panellist 3: Jaya Ratnani, managing partner at Freed Financial Services
You have done well to pay off most of your personal loan and your regular track record of payments will work in your favour when it comes to negotiating a debt settlement with your bank.
However, I would like to point out some discrepancies in your calculations. You have a reducing balance loan and your calculation for the remaining principal and interest seems to be incorrect. The full interest component is already recovered in the loan by the bank. Based on the numbers provided, your actual remaining principal will be Dh124,500 and interest Dh5,000 only.
Because it is a personal loan, it is secured against your salary and gratuity by the bank. Your employer will need to credit the gratuity amount in the same salary transfer account, which will be blocked by the bank.
For the release of your payment, you will need to provide documents of your new job. Each bank has a different process for the number of days they can hold the funds.
If you plan to leave the country and the end-of-service amount secures the total outstanding owed, the bank will draw it down with the funds available in full. If the amount does not secure the full outstanding owed, you can negotiate with the bank for the shortfall. Based on your situation, they can review your financials for a partial waiver.
Your situation is tough but it is imperative that you settle all your dues before leaving to avoid any legal implications or issues with collection agencies in India.
The non-payment will balloon the interest on the loan, which will become impossible to pay in the future. It will also reduce your chances of coming back to work in the UAE if you find any opportunity.
The Debt Panel is a weekly column to help readers tackle their debts more effectively. If you have a question for the panel, write to pf@thenational.ae
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
UAE currency: the story behind the money in your pockets
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
Company%20profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20FinFlx%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20January%202021%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Amr%20Yussif%20(co-founder%20and%20CEO)%2C%20Mattieu%20Capelle%20(co-founder%20and%20CTO)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBased%20in%3A%3C%2Fstrong%3E%20Dubai%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20FinTech%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFunding%20size%3A%3C%2Fstrong%3E%20%241.5m%20pre-seed%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Venture%20capital%20-%20Y%20Combinator%2C%20500%20Global%2C%20Dubai%20Future%20District%20Fund%2C%20Fox%20Ventures%2C%20Vector%20Fintech.%20Also%20a%20number%20of%20angel%20investors%3C%2Fp%3E%0A
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
COMPANY PROFILE
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Haircare resolutions 2021
From Beirut and Amman to London and now Dubai, hairstylist George Massoud has seen the same mistakes made by customers all over the world. In the chair or at-home hair care, here are the resolutions he wishes his customers would make for the year ahead.
1. 'I will seek consultation from professionals'
You may know what you want, but are you sure it’s going to suit you? Haircare professionals can tell you what will work best with your skin tone, hair texture and lifestyle.
2. 'I will tell my hairdresser when I’m not happy'
Massoud says it’s better to offer constructive criticism to work on in the future. Your hairdresser will learn, and you may discover how to communicate exactly what you want more effectively the next time.
3. ‘I will treat my hair better out of the chair’
Damage control is a big part of most hairstylists’ work right now, but it can be avoided. Steer clear of over-colouring at home, try and pursue one hair brand at a time and never, ever use a straightener on still drying hair, pleads Massoud.
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Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
How much do leading UAE’s UK curriculum schools charge for Year 6?
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- Gems Wellington International School – Dubai Branch – Dh58,488
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- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
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- An elevated football field that doubles as a helipad
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Q&A with Dash Berlin
Welcome back. What was it like to return to RAK and to play for fans out here again?
It’s an amazing feeling to be back in the passionate UAE again. Seeing the fans having a great time that is what it’s all about.
You're currently touring the globe as part of your Legends of the Feels Tour. How important is it to you to include the Middle East in the schedule?
The tour is doing really well and is extensive and intensive at the same time travelling all over the globe. My Middle Eastern fans are very dear to me, it’s good to be back.
You mix tracks that people know and love, but you also have a visually impressive set too (graphics etc). Is that the secret recipe to Dash Berlin's live gigs?
People enjoying the combination of the music and visuals are the key factor in the success of the Legends Of The Feel tour 2018.
Have you had some time to explore Ras al Khaimah too? If so, what have you been up to?
Coming fresh out of Las Vegas where I continue my 7th annual year DJ residency at Marquee, I decided it was a perfect moment to catch some sun rays and enjoy the warm hospitality of Bab Al Bahr.
Second Test
In Dubai
Pakistan 418-5 (declared)
New Zealand 90 and 131-2 (follow on)
Day 3: New Zealand trail by 197 runs with 8 wickets remaining
Killing of Qassem Suleimani
Mohammed bin Zayed Majlis
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EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
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Indoor cricket in a nutshell
Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
