FREE LEGAL AID & SEMINAR
Employment Laws in the UAE
30 June 2017 (Friday)
2:30 PM at the Philippine Embassy, Abu Dhabi
● Know your rights as employees
● Limited and Unlimited Contracts
● Offer Letters
● Probationary Period
● Free Zone Employment Visa
● Abusive employment practices
● Labour Case
● Employment Benefits
● Labour Ban
● Wage Protection System
● Gratuity Pay
Central Bank Rules on Loans
Atty. Barney, please advice the pertinent rules on credit cards, personal loans and car loans as per the UAE Central Bank. Can banks demand the issuance of blank security cheques before they release the loan? – Sixto
Banks and financial institutions are not allowed to take blank cheques as a condition for loan approval. This is provided for under Article 15 (b) of the UAE Central Bank Regulations No 29/2011 regarding bank loans and services offered to individual customers.
Credit Card Rules
Banks and finance companies issuing such cards must abide by the following:
• Provide these cards to persons whose annual income equals or exceeds AED60,000.
• These cards may be provided against a pledged deposit of value not less than AED60,000.
• Banks or finance companies should provide their credit card customers with a monthly statement of expenses, showing values of purchases and cash withdrawals, and they should immediately investigate if a customer challenges any expense item.
Interest on credit cards due balances shall only be calculated for the outstanding balance after the maturity date for its full payment; i.e., in the month following the month on which the purchases and withdrawals have occurred.
Personal Loan Rules
Article 2 (a) of the Regulations defines personal loan as a loan that is given to individual customers, where repayments are made out of salary and end of service indemnity and/or any other verifiable regular income from a well-defined source. In order to ensure that the monthly installments deducted for repayment of this loan and resulting interest are kept in a reasonable proportion to the customer’s income, the deductions from his salary and/ or regular income must not exceed 50% of his gross salary, and any regular income from a defined and specific source at any time.
The Amount of the personal consumer loan has been set at 20 times the salary or the total income of the borrower and banks must make sure that this limit is not exceeded. The repayment period for this loan must not exceed 48 months.
Car Loan Rules
This is a loan extended by the bank or finance company to its customer for the purpose of purchasing a private car. A car loan shall be treated as separate from the personal consumer loan, and should not exceed 80% of the value of the financed vehicle.
The maximum period for repayment of the loan shall be 60 months. This loan should be secured by a mortgage over the car.