Thursday , December 14 2017

Bank Loan

I am from India and have been working in Kuwait for the last 2 years. Currently I have a KD 5,000 loan from one of the local banks.

The loan is already “10 months old”. I am getting the installments plus the interest deducted on a monthly basis from my salary account. At the moment, due to some emergency reason, I have come to India and am not able to go back to Kuwait at this time.

Now I have the following questions:

A. Can I keep transferring the monthly amount to the bank from my Indian bank.

B. Within one year I want to go back to the Gulf or Kuwait. In that case, if I pay them the accumulated interest also, but will that create any problems for me?

C. Do the Kuwait Laws say that if anyone takes a loan from Kuwait he/she must pay back the loan before he leaves the country? If the monthly interest can be transferred from an Indian bank, will that be an issue?

D. As I came on an emergency vacation and did not go back so my visa was not cancelled. It may be cancelled once it expires? Will it have an effect on the loan if I continue paying the monthly interest.

E. What is the legal action that be can be taken? Please advise.

Name withheld
Answer: In this case we will just tell you to contact the bank as every bank has a different set of rules for every situation and if you don’t let the bank know of the correct situation the person who stood guarantor for you will find himself in a very difficult situation.

He could also face legal action. If there was no guarantor — which does happen nowadays — the bank could file case against you and you could be tried in absentia by the Kuwait courts and sentenced. If such a thing happens, the Indian government would be informed of the verdict resulting in more legal complications for you.

So, approach the bank quickly and negotiate a way out of your situation. We are sure that the bank would be happy that you yourself seek an end to the problem and would most probably suggest a mutually agreed way out of the “crisis”. This would save you a lot of tension and also ensure that there are no hurdles in the path of your return to Kuwait/Gulf.

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