my friend has been terminated with existing bank loan, how could he pay.
6-1/2 Yrs of experience and management has told me that my service pay will be made as collateral but it is not enough to pay the loan, what about the balance and its implications?
Please advise
BANK LOANS
boyetski04
30 April 2015 08:34:34
2
mannyd
30 April 2015 08:38:07
309
"my friend has been terminated with existing bank loan, how could he pay.
6-1/2 Yrs of experience and management has told me that my service pay will be made as collateral but it is not enough to pay the loan, what about the balance and its implications?
Please advise"
you said your friend and then its your service pay will be made collateral. Complicated.
why did you agree that your service pay will be made collateral? Anyway here are my token advice;
1. tell him to (or you) continue paying.
2. find another job/employer.
3. he (you) can sell his/your properties to pay off the debts/loan.
as for implications, that bank will look for you. They have collection agents in other countries and these agents will look and call you and will keep calling you. Ask the bank about their policies if the borrower can not pay.
boyetski04
30 April 2015 08:40:13
2
what about the coverage policy of insurance being deducted from the proceeds of the loan
mannyd
30 April 2015 08:52:40
309
boyetski04 wrote:what about the coverage policy of insurance being deducted from the proceeds of the loan
to make it simple, it is a loan and In case of default, your service pay is the insurance/collateral to that loan/debt.
you or he shall pay the loan, the full amount remaining. if your/his loan is deemed payable in five years, you pay it in five years. Payment is through monthly salary deductions from your/his salary/bank account as the standard practice.
Example; you owe the ban 100k riyals, you paid 2 years amortization amounting to 24k. you have a balance of 76k. your service pay is 30k that was paid to the bank. your remaining balance is 46k.
pay the remaining loan that you/he owed to the bank.
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