It is no secret to any of us : the extent of the confusion that befalls us when we try to make a decision in our financial affairs, especially in our time, or even when dealing with financial documents, we feel confused and stressed, and be careful before making a decision because the consequences of making any wrong decision in this particular area may cost the owner huge losses.
– Therefore, it is very necessary to have a financial culture that makes its owner knowledgeable and enables him to manage money effectively, and therefore makes him able to make more accurate decisions, and be based on a solid foundation of financial culture and knowledge. This article will show you some of the disadvantages of loans and bank guarantees and what you will be exposed to legally if you have to take out a loan to use a bank guarantee.
– Definition of a loan: paying money like me to pay back his allowance, the main purpose of which is to help the borrower to benefit from the money and return the same or its value, and it may not be for the purpose of profit and return more than the same >
– Also, our Islamic law and our true religion have permitted the ruling of the loan and the borrower, as it is a matter of volunteering, charity and discharge from Muslims, and Allah has said in a court of download -: (whoever lends Allah a good loan, he multiplies it for him many times, and Allah catches and simplifies and to him you return), and it was reported from Abu Hurayrah – may Allah be pleased with him-that he said: (a king by a door of heaven calls : whoever lends today is rewarded tomorrow, and if a king by another door, he says : give a back spender and hurry to catch damage) .
– Types of loans :
1-the loan is secured by an additional guarantee .
2-loan without collateral .
3-guarantor loan .
- closed and open end loan .
- personal loans .
- debt consolidation loans .
- car loans .
8 .small business loan.
9-mortgage origination loan .
- fixed interest rate loan .
- variable interest rate loan .
12-education loans
13-marriage loans
– Definition of bank guarantees: a bank guarantee is a guarantee for contracts between two external parties such as the buyer and the seller, or it concerns the guarantee for the applicant for the guarantee and the seller. The bank guarantee acts as a risk management tool for the seller, as the bank is responsible for completing the contract in the event of the buyer’s inability to pay its debts or obligations. The bank guarantee serves small companies by providing credibility to those companies through the bank’s approval of the creditworthiness of those companies that are in the role of the buyer, and thus the Bank participates in signing the contract concluded on behalf of the buyer.
– In the case of a bank guarantee, the main debtor is the buyer or the applicant, and when the applicant is unable to fulfill part of his obligations, the bank guarantee will not enter into the process immediately, and the beneficiary will need to claim his rights first from the applicant. Unlike in letters of credit, the beneficiary’s claim is addressed first to the bank.
– Disadvantages of bank guarantees: it is possible that the participation of a bank in the transaction will weaken the process and add an unnecessary layer of complexity and bureaucracy, and when it comes to high-value movements or involving special risks, the bank itself may need a guarantee on the part of the applicant in the form of a special guarantee.
– Many of us are being sued and sued because of his inability to pay the installments of these loans, and even more so those who are being held against executive files on these loans and even issued executive procedures and circulars such as arrest, subpoena and seizure of accounts, cars, real estate and all his transactions
If you are one of these and executive circulars and procedures have been issued against you and you don’t know what to do, you have the solution, as we at the black robe for legal consultancy and debt collection company specialize in the work of Bank loan – Bounced Cheque Cases lawyer in Dubai Abu Dhabi UAE.
– Whereas, based on the article 2 of the Federal Decree No. 23 for a year 2022 on the organization of financial institutions and systems, according to which a new article was added with the number 212 BIS (credit facility guarantees), which was that :
That all banks must take sufficient guarantees for all types of facilities and loans provided to customers from natural persons and individual institutions so that they correspond to the client’s income or guarantee, if any, and the size of the facilities required.
– And not only that,,, but any request, lawsuit or payment before judicial authorities or arbitral tribunals will not be accepted if raised from banks regarding credit facilities and loans provided to an individual person or institution in the absence of guarantees, and then only the guarantees provided during the contract between the parties to the dispute are implemented
– Thus, the borrower (the executor against him) who has the right to circulars and executive actions by submitting an application to the execution department with an independent request explaining what guarantees are on credit facilities for execution exclusively without taking any executive actions against the client
