A loan is a contract between the debtor and the bank. A lot of time banks are interested in requesting the rescheduling of the loan interest. If they intend to do so, they can request it. The rescheduling of the loan will result in a new contract being assigned between the 2 parties. Besides, the rescheduling of a loan will lead to a new contract between the bank and the debtor. In a lot of cases, the debtor takes up the bank loans and is unable to pay the installments due. The reason could be any reason for the Non-Payment. The details can be grabbed from the expert lawyers in banking usually the Advocates in Dubai or the Legal Consultants.
The debtor may request more time to pay out its outstanding amount, therefore, the debtor will request a rescheduling of the bank loan. The bank may increase the bank interest applied on the loan. The debtor may refuse to pay the additional increase applied to the loan. The question here arises is what the law has to say about it. Is the debtor legally bound to pay the increase in the interest rate? What action needs to be done in this scenario? The situation may appear to confuse the debtor.
The rescheduling of the bank loan can be done in many forms. This may include the replacement of the original debt or bank loan with the new one. It entails the renewal of the client's commitment. This will result in the expiration of the first commitment. This may result from the current account. It may result in a replacement with another new commitment.
How a Lawyer can guide you
Here a lawyer can guide you as per the UAE laws. All you need to do is to contact a well-trained lawyer who is brilliant with laws and their interpretation. The lawyers can guide you in this as per the situation. The debtors or the banks will be able to facilitate the services. The UAE laws have to offer the provisions.
Attorneys and legal advisors in UAE are capable of providing legal guidance to interested parties. Besides, this may result in ease and comfort for the debtor and creditor.
Another Discussion: Termination of a purchase agreement in case of Losing a Job
Is the buyer in a position to terminate the property contract or the agreement once after he loses the job, this is a million-dollar question. This can be done once after the court is approached. It is done in front of judges or a jury. This is also about the terms and conditions of the work agreement.
A lot of people asked this question: can they end the property agreement once they lose their job? This is because now they have no source of income to pay for it.
What is the legal stance on the matter? What do UAE laws have to say about it? Can a person who lost his job van request the end of the property contract?
This matter is complicated. Here the law says that you can only terminate the purchase contract before the court. Moreover, this is your responsibility as you lost the work and in law, it is not termed as force majure. Any person can lose all or some of their money. This is dependent on the percentage of the completion of the real estate property project.
In addition, there are always terms and conditions attached to the contract to which a developer is bound to adhere too. If any delay or breach of the contract occurs, the developer is liable. Here we will look into detail about what the law has to say. It is a case treated under article 11 which was amended in 2020.
It was first introduced in 2008. Under regulating the intern real property register in the Emirates of Dubai, certain laws are applied. If the completion of the go real property project exceeds 80%, the developer may not terminate the off-plan sale agreement; it is up to 40% of the real worth of the property. The termination can take place.
Moreover, if the percentage of completion of real property is between 60 percent to 80 percent, the developer can retain 40 percent of the value of the property. Therefore, if the percentage is 60%, the developer can retain up to 25% of the value of the real property.
Note: Please be aware that while taking any legal action consult the Advocates and Legal Consultants. The online content can be outdated as well. This is a just source of knowledge and platform for the discussion. Therefore consult the Advocates and choose the Top Law Firms in UAE. An example is Al Shaiba Advocates – Ask The Law in Dubai, UAE.