Personal Loans in Dubai – Past and Present
Dubai – A Country Filled With Personal Memories
My profile states that I had been working as a sales executive in different countries. The currently troubled emirate of Dubai was the country that was my home for 14 years. Those were the boom time years. Real Estate projects that are currently under pressure were the ones that were still on the drawing boards at that time. Life for me was easier. I had a good employer paying me monthly wages of $1, 650. That in turn gave me access to a bank account and credit facilities. I could also get personal loans from the bank I dealt, with just a letter from my employer.
Reasons for Taking a Loan in Dubai
As mentioned earlier, I had everything going for me in Dubai. I had good wages with perks that included a car and a furnished home. In reality that meant I only had to spend on food and any luxuries that I wanted. However, I decided to apply for a personal loan just because I was eligible. My aim in doing so was to transfer the money I could raise back to my country as savings. I approached the bank where I had my account and discussed the issue with them. Since I had no debts of any kind in the country, the bank agreed to advance a sum of $6, 000 within a couple of days. All that they wanted was proof about the length of my service and a letter from my employer, which stated that my end of service benefits would be transferred to the bank if I quit my position.
I was Happy When I Got the Money
My joy knew no bounds when I laid my hands on the money. $6,000 in Dubai translated to 285,000 in Indian currency at that time, and I could transfer the entire sum to my country within minutes. That done, I started paying off the loan in monthly installments of $250 each and still had enough money left for me. I was happy and so was the bank.
Trouble Came in 2002, but I Was Covered
Constant travel and stress on the job left me with high blood pressure and unable to work. I decided to quit from my position and return back to my own country. I still had part of the loan to settle and that amounted to $1,750. My end of service benefits were far in excess of what I owed and were transferred to my account by my employer. I was able to settle the loan and still leave the country with enough money in my hands.
What if the Benefits Hadn’t Been Enough?
Looking at the news flowing out of the country today, I wonder whether a similar situation exists now. The projects that were on the drawing boards then are all in different stages of completion. But the government has no money to complete them. Employees are being laid off and I am sure that many of them have personal loans taken from the banks. For every person who is comfortable and able to pay off the loan, there will be many more that are likely to default. How are the banks going to manage all the bad debts that are waiting to mount? The situation looks grim at the moment and is likely to hit other parts of the world as well. It certainly looks that we are headed towards another recession if a solution is not found soon.