Definition of religion:
Economists define debt (debt) as a sum of money owed by a person called the debtor or required of him (the debtor) to another person called the owner of the debtor-creditor, and the debt in the economy may be money, goods or service, while commercial debt is a contractual agreement consisting of principles The basics with the amount and time to pay back the debt, bonds, and bets are examples of different types of debt.
Debt or loan entails moral standards that must be met. The term debt is used figuratively as a favor, when someone helps another person, it is said (that he has two necks of debt).
Some companies or people resort to debt and lending to complete their financial transactions.
The debt is contracted if the creditor agrees to lend the debtor a sum of money, and the debt is granted by the agreement to recover it at a known time with an interest rate.
Learn about the UAE Central Bank’s classifications of types of loans:
1- Ordinary loans.
2- Monitor loans.
3- substandard loan.
4- Doubtful loans.
5- Non-performing loans.
According to what was stated in the classification of these lists by the Central Bank, the loans that are classified as “normal loans” are low-risk accounts. As for the loans classified as “below the normal level,” they are loans that may result in risk and losses due to the presence of an impediment to their repayment. As for the loans “Doubtful” loans are loans whose full repayment is less likely according to the information available regarding them. As for the debt repayment.
What are the methods used to organize the debt repayment process?
1- The final balance amount must be available and payable in full upon redemption of the debt.
2- Pay off the entire debt during the loan term from the principal balance.
3- Paying part of the debt during the loan term, provided that the rest of the amount is due upon demand.
What are the payment procedures for debt collection in the UAE?
When the debtor fails to meet his debt in favor of the bank, the bank sends several notices of payment before sending a final warning and before taking any legal action.
The bank expands filing a lawsuit to demand the debtor to fulfill, but many banks usually resort to using what is under his hand from the guarantee tools, such as real estate mortgages, which the bank may resort to selling to pay the loan or provide a security check for exchange, and in the event the check returns, legal measures are taken, which exposes Debtor for punitive action.
The bank may start taking legal actions against the insolvent after the expiry of the grace period granted to him to pay the debts, which ranges from sixty days to ninety days from the due date as provided by law.
What are the facilities offered by banks?
1- personal loans.
2- Credit cards.
3- Car Finance.
4- Financing the needs of companies.
5- Real estate finance.
Learn about delinquent bank debt settlement:
In the United Arab Emirates, there is a higher committee for the Fund for Remedying Bad Citizens’ Debts that works on procedures for bank settlements with creditor agencies and banks in accordance with the established procedures.
By a decision of the President of the United Arab Emirates, Sheikh Khalifa bin Zayed Al Nahyan, the Fund for Resolving Bad Debt for Citizens was established, an initiative aimed at curbing the phenomenon of personal loans that burdened citizens with limited income.
The committee includes in its membership representatives of the Ministry of Presidential Affairs, the Court of the Crown Prince of Abu Dhabi, the Abu Dhabi Finance Department, the Central Bank, and the Abu Dhabi Judicial Department box.
What are the priorities of the bad debt fund recipients?
1- Those arrested in connection with bad debts cases.
2- those against whom court rulings have been issued.
3- Who do the courts consider cases brought against them.
4- Those who have opened reports about them in police stations in the United Arab Emirates.
What are the conditions for obtaining the Fund’s facilities to settle bad bank debts?
1- The applicant must be a citizen of the UAE.
2- To be on the job.
3- Has a fixed salary or income, including retirees.