The Debt Panel: 'Can I pay my UAE loan off from my home country?'

I have been living in the UAE for the past seven years and lost my job in 2021. I haven’t been able to find another one and my savings are almost gone.

I have cut down on my day-to-day living expenses and moved to cheaper accommodation but my savings will not last forever.

Because of this, I have decided it is time to return to my home country as I will be able to stay with family until I get back on my feet. However, I have a personal loan here and I am worried about what will happen if I leave.

I still owe Dh20,000 ($5,445) but haven’t missed an instalment as I was able to use my savings to pay every month.

I am fully committed to continue paying the loan off, it’s just that I can’t afford to be here any more while I look for a job.

Is it possible to continue paying the loan off from my home country if I leave the UAE? If so, what is required to organise this with my bank? If they don’t agree, will I have a problem leaving the country? JD, Dubai

Debt panellist 1: R Sivaram, executive vice president and head of retail banking products at Emirates NBD

It is unfortunate you are facing this predicament and I empathise with your situation. However, it is commendable you have managed your savings and daily expenses well to ensure you can pay your loan instalments on time.

I would recommend you reach out to your bank and share details of your financial position. Request for a revised payment plan over a longer term that will help you to continue paying off the outstanding, with lower monthly instalments.

Your bank may require supporting documents to assess your request, but considering your good repayment track record, it will most likely be flexible and offer you a mutually acceptable plan.

To avoid future problems, it is important you secure an agreement in writing with the bank for your loan restructuring before leaving the country.

Try to pay off as much as you can before you leave and have a clear repayment plan in writing for when you return to your home country.

Carol Glynn,
founder of Conscious Finance Coaching

In addition, you should check to see if you have any insurance policies against your existing loan.

Depending on the terms and conditions of your agreement, these policies could cover involuntary loss of employment.

In the event this applies to your case, the insurance could defer your monthly payments for a predetermined period, which would further aid in alleviating your financial burden.

I wish you the best at arriving at a suitable solution and in finding new employment soon.

Debt panellist 2: Carol Glynn, founder of Conscious Finance Coaching

You have done an admirable job keeping up with your debt payments and have now made a sensible decision to move to a cheaper location so you can extend the life of your savings.

It is possible to make the loan repayments from your home country and there are many successful cases where banks have agreed to this.

However, banks can be wary of this kind of situation due to a history of people leaving the UAE without paying back their debt.

They may also be wary as you cannot show them evidence of a source of income in your home country. You will need to show a commitment to continue paying the loan, but the fact you have never missed a payment will strengthen your case.

Try to pay off as much as you can before you leave and have a clear repayment plan in writing for when you return to your home country.

You should also prepare for plan B, in case the bank demands immediate repayment.

Can you pay the loan in full from your savings? Or is it possible to obtain a loan from family members and then you can repay them when you find work in your home country?

Never rely on a verbal arrangement with the bank and ensure you get any agreement in writing before you leave the UAE.

Debt panellist 3: Felicity Glover, personal finance editor at 'The National'

Since the pandemic began two years ago, it has been a difficult time financially for many. You are fortunate to have had savings to fall back on during this time, which have allowed you to continue making payments on your loan.

That is positive for your current situation as your bank will see this in a favourable light. While there is no requirement that you have to reside in the UAE to pay off a loan, some banks may not agree to this as you have no proof of employment in your home country.

That said, it is worth meeting with a representative from your bank to discuss your situation and request to continue paying the loan from your home country. If the bank does agree to this, ensure you get everything in writing.

However, there are a number of other options you can explore to solve your issue.

Firstly, do you have any assets that you could sell to pay off the loan in full, which would allow you to leave the UAE without a financial burden? This could be anything from a car to shares or other investments you may have.

The Dh20,000 that you owe is relatively small — is it possible that a family member could loan you the money until you get back on your feet?

I do understand finding another job has been difficult, but the way we work has been transformed by the pandemic and traditional “brick-and-mortar” jobs are no longer the only option workers have to earn a regular salary.

Working from anywhere has become the norm these days and many companies around the world are looking to hire full or part-time remote workers, regardless of where they live.

This could be anything from graphic design work to accounting and finance, administration roles, technology specialists, software developers and project management, among others.

Some of the more popular remote working websites include Fivrr, FlexJobs, UpWork and We Work Remotely, which are worth checking out for jobs suited to your skills.

If you do choose this option, then it could also mean you don't have to leave the UAE as there are a number of new visas the government has introduced as part of its plans to boost the economy that allow people to work remotely or as a freelancer.

This is certainly worth considering and could open up a new income stream and way of working for you. In the meantime, I wish you the best in finding a workable solution to your problem.

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

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Name: Xpanceo

Started: 2018

Founders: Roman Axelrod, Valentyn Volkov

Based: Dubai, UAE

Industry: Smart contact lenses, augmented/virtual reality

Funding: $40 million

Investor: Opportunity Venture (Asia)

Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

Price: From Dh126,000

Available: Now

Winners

Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)

Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)

Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)

Best Young Women’s Player
Vicky López (Barcelona / Spain)

Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)

Best Women’s Goalkeeper
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Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)

Women’s Coach of the Year
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Final: England v South Africa, Saturday, 1pm

The 12 breakaway clubs

England

Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur

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Founders: Joe Franklin and Milos Savic

Launched: February 2020

Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year

Employees: Five

Based: Jumeirah Lakes Towers, Dubai

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Fights start from 6pm Friday, January 31

Catchweight 82kg
Piotr Kuberski (POL) v Ahmed Saeb (IRQ)

Women’s bantamweight
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Welterweight
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Welterweight
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Flyweight
Isaac Pimentel (BRA) v Delfin Nawen (PHI)

Catchweight 80kg
Seb Eubank (GBR) v Mohamed El Mokadem (EGY)

Lightweight
Mohammad Yahya (UAE) v Ramadan Noaman (EGY)

Lightweight
Alan Omer (GER) v Reydon Romero (PHI)

Welterweight
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Featherweight
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Super heavyweight
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Rating: 2.5/5

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The flights
Return flights from Dubai to Windhoek, with a combination of Emirates and Air Namibia, cost from US$790 (Dh2,902) via Johannesburg.
The trip
A 10-day self-drive in Namibia staying at a combination of the safari camps mentioned – Okonjima AfriCat, Little Kulala, Desert Rhino/Damaraland, Ongava – costs from $7,000 (Dh25,711) per person, including car hire (Toyota 4x4 or similar), but excluding international flights, with The Luxury Safari Company.
When to go
The cooler winter months, from June to September, are best, especially for game viewing.

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- Start with a simple recipe such as yogurt or sauerkraut

- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.

- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.

- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.

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