Tuesday, 16 June 2015

Marriage loans are excellent – if you’re fulfilled all the terms

Your bank may pull the plug on your marriage loan if is suspects you of certain transgressions. Read on to know more.

You’re about to throw your child a grand wedding bash, the kind of marriage party that your friends and relatives will remember forever. For this, you’ve decided to borrow from the bank, via a marriage loan that will pay for the wedding and all its associated expenses.
Accordingly, you apply for a personal loan to cover the wedding expenses. However, the UAE has now made its loan application process more stringent for personal loans, car loans and overdraft facilities, across all banks and financial institutions in the country. Hence, though you may receive the marriage loan almost at once, the lending bank or financial institution may terminate it prematurely if you fail on certain stipulated terms.
Some banks in the UAE have had a history of bad loans with expats or nationals who did not repay the loans and who either moved from the UAE or changed their jobs without informing the bank. Thus, the new norms take an undertaking from applicants that any change in their job status (and this includes if the applicant is laid off by the company or transferred to another country), whether they are leaving the country before the loan tenure is up, and whether they have raised additional funds based on the loan taken, must be intimated to the bank.
Additionally, there have been cases where applicants have transferred their salaries to another bank without informing the lending bank, or violated the loan terms such as defaulting on payments or submitting false income proofs, or fleeing the country when unable to repay the money. In all these cases, the bank will suspend and terminate the loan as is, and give the applicant a certain period of time to repay the money. If the remainder of the borrowed funds are not repaid even after this time has elapsed, the bank may seek prosecution of the applicant.
Don’t let these transgressions ruin your marriage loan – be clear about your dealings with the bank and avail of the loan only when you’re certain that you can repay it. The contract you sign with the bank or financial institution is a legally binding one and not to be trifled with. Besides, having your loan recalled and terminated will result in a bad credit rating for you – which will make it difficult to avail of other loans in the future.