UAE Central Bank issued unified forms for Bank Loans

The Central Bank has finally issued unified forms for all types of bank loans, ending years of controversy over such contracts and persistent complaints by borrowers, a Dubai-based newspaper said on Wednesday.

The three key forms cover personal loans, car financing and overdraft and they are all binding to all the 51 banks and other financing firms operating in the second largest Arab economy, the Arabic language daily Emirat Alyoum said.

Banks can claim immediate payment on loans if:

The debtor is terminated for any reason from his/her work.

Transfer of the monthly salary of the borrower or any part of it to another party without the written consent of the bank.

Breach of commitments or obligations which have been included in the contract of the loan.

Failing to pay three consecutive installments or six non-consecutive

 in addition to the invalidity of customer data.

Borrower leaves country permanently.

Death of borrower.

Bank has the right to obtain an insurance policy on the life of the debtor in case of disability and should be paid by the borrower himself. Bank can use revenue of policy to pay out the loan, to keep the interest or any other amounts due on the shoulders of the borrower or his heirs.

Interests and Commissions

Banks will have the right to calculate interests and commissions on average daily balance of amounts withdrawn and outstanding on the loan from the date of withdrawal based on the number of actual days elapsed and on the basis that a year is 365 days.

These interests are added to the loan balance so that it should be paid with the monthly instalments.

Commissions and fees and expenses incurred on the loan, according to UAE Central Bank regulations, may be amended from time to time.

Car loans

Bank should be informed of specifications of the vehicle and the value of payment in addition to the interest rate.

Insurance company must be approved by the bank.

In case of failure of the borrower to renew insurance policy, renewal fees will be added to the loan.

The forms, which will be enforced shortly, have been prepared following many rounds of negotiations and consultations between the Central Bank and the Emirates Banks Association, which groups all banks in the UAE.

The new contracts authorise banks to ask borrowers to ensure all borrowings are covered by a life insurance or a disability insurance policy, in some cases to guarantee the loans would be paid back as the lender could use its value to regain the rest of its funds.

The paper said the forms must include all details about the size of the loan, maturity, and interest rates while borrowers must submit a letter from the employer committing him to have his salary and end of service benefits transferred to that bank during the loan term.

It said the Central Bank defined seven cases in which the loan period should suspended and payment must be made immediately, including termination of services of the borrower, transfer of the salary to another bank without prior approval of the bank, violation of any loan terms by the borrower, defaulting on payment of three successive installments or six non-successive installments, presenting false data by the borrower, death of the borrower and the client’s departure from the UAE permanently.

As for overdraft, the new contract allows banks to cancel or reduce such facilities any time they deem necessary and to ask borrowers to pay back at a date determined by the lender provided the borrower is given 30-day notice.

According to the paper, the three loan forms clearly define the relationship between borrowers and lenders. One term stresses that the bank must not open an account and agree to give a loan before the borrower submits all the documents requested by the bank. Another term authorizes banks to close the account of borrowers in case they give cheques that bounce.

The forms also permit banks to provide all necessary information about the borrowers and their accounts to courts or other competent departments.

Saudi Arabia - Visa Rules

Types of Saudi Visa

 

All visitors require a visa to enter Saudi Arabia, and visas are only granted to those with sponsorship in the country. Tourist visas are granted only to selected groups on a limited basis, and all visitors to Saudi Arabia are required to have a valid passport with at least six months validity, in addition to the appropriate visa and a return ticket, with all necessary documents.

Due to the strict requirements of Saudi Arabia, women entering the Kingdom alone must be met by a sponsor or male relative and have confirmed accommodation for the duration of their stay. Additionally, entry may be refused to any visitor judged as behaving indecently, according to Saudi Arabia law and tradition.

Travelling to Saudi Arabia? If so, you'll need a Saudi Arabia visa. Click here to make applying for a Saudi Arabia visa easyTravelling to Saudi Arabia?  If so,you'll need a Saudi Arabia visa. Click here to make applying for a Saudi Arabiavisa easy.

If you are going to be working in Saudi Arabia then you will need a Saudi Arabia Work visa or a Business Visa. There are 5 main types of Visa that you can apply for when looking to enter The Kingdom of Saudi Arabia (KSA) for either work or just to visit;

Business Visa, this is for business men working for companies outside Saudi Arabia so that they can come into the Kingdom to work with or for a Saudi company. The duration can be one, three or 6 months. It can also be used by companies to bring you into the kingdom to work on a short term contract or to try you out during your trial period, although this is not what the visa is for.

Work Visa, this is for those that have been offered a contract to be working in Saudi Arabia, you will require to have medicals and submit educational certificates, all of which have to be legalized. Use an agent to do this as you will have to complete a large amount of paperwork.

Holiday Visa - It is available, but unless you are Muslim with family in Saudi Arabia to sponsor your visit you are unlikely to get it! They do however want to develop the tourist industry so it will be interesting to see how this develops.

Dependent visa for Saudi Arabia (KSA), this is for the family of those that have an approved work visa. Please note however that only legalized marriage will be recognized, you can't bring your girlfriend even if you have been together for 20 years.

Umrah/Haj Visa, this is for those that wish to visit to make Umrah/Haj, religious pilgrimage to Makkah (Mecca). This is only for Muslims and the visas are limited by number and through approved travel agents only.

 

Country-Specific Requirements

Applicants from all countries require a visa to enter Saudi Arabia, except for:    Nationals of Bahrain, Kuwait, Oman, Qatar and United Arab Emirates.    Transit passengers continuing their journey by the same or first connecting aircraft within 18 hours, provided they hold  valid onward or return documentation,  do not leave the airport and make no further landing in Saudi Arabia (except nationals of Burkina Faso, Mali, Niger and Nigeria who always require a transit visa).

 

Processing Times

When applying for a Saudi Arabia visa, processing time and fees are very dependent on the visa class, as well as the nationality of the applicant and the time of year.  Both the time taken to process the visa application and the cost are subject to change, but by having an understanding of each Saudi Arabia visa class and seeking professional assistance when making an application, you can be assured the most time and cost efficient process possible

Locals to get 3-7% and expats 5% salary hike

Emiratis will get seven per cent while expatriates will receive five per cent salary hike based on their outstanding performance under the recently-announced increment for Dubai government employees, a senior official said.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE in his capacity as Ruler of Dubai, on Wednesday ordered the payment of annual performance-based increment for employees of the Government of Dubai for last year.

Amal Bin Adi, Director-General of the Human Resources Department of Dubai Government, told 'Emarat Al Youm' that increment will be given on basic salary.

She said those Emiratis whose performances just meets the expectations will get three per cent salary hike of their basic salary.

The Human Resources Department also emphasised that those employees who have completed six months in the job and those who are on duty and not resigned from the work will qualify for the increment.

“The increment will be given to employees of 42 departments and institutions of the Dubai government under the provisions of the human resources law of the Government of Dubai No. 27 of 2006, as amended and applied performance management system to the staff of the Government of Dubai,” she said.
Employees who completed six months in the job and those on duty and not resigned will qualify for the increment

Visa, ID to be linked in Ajman from June 1

Renewal or issuance of residence permits would be linked directly with ID card registration in Ajman from the June 1, the Emirates Identity Authority (EIDA) has announced.

The Gulf Today quoted a senior EIDA official making a statement to this effect.

In a statement, Abdul Aziz Al Maamari, director of Public Relations and Marketing, Eida, said this would mark the fifth stage of the operation in the Emirate.

The issuance of ID card would be subject to completing preventive medicine procedures, and the residence visas would be issued only if the applicant submits the ID registration documents are submitted along with other regular documents.

Al Maamari clarified that the registration receipt with the ID seal will be one of the main documents required by Ajman residents to obtain or renew residency permits.

For those residents whose permits will be issued or renewed in Ajman and who want to obtain an ID card, the official said that they should go to an authorised typing office in the Emirate, the customers will then need to go to the Preventive Medicine Centre in Ajman for medical examination before heading directly to the Eida’s Ajman Registration Centre.

Eida has already started linking ID card registration with residence issuance or renewal procedures through registration centres annexed or close to preventive medicine centers in UAQ, Fujairah, RAK, Dibba Al Hisn, Al Dhaid and the Western Region.

Six-month ban on job- remains in UAE, but with conditions

Employees need to work a minimum of two years in a company and can transfer to another facility of the same employer

Labour Ministry has clarified the amendments it made to labour laws early this week and said the six-month ban on job transfers remains, but with certain conditions, reported Arabic language daily Al Khaleej.

Humaid bin Dimas Al Suwaidi, Assistant Undersecretary for Labour Affairs, said: "While the amendments in labour laws aim to improve employer-employee relationship and make it easier for people to switch jobs, if the agreements between the two parties are not adhered to or employees breach any of the labour laws, such as not spending a minimum two years with an employer, then they can face a six-month ban."

"There will be no ban if employees transfer to another facility of the same employer or to those companies in which the employer has a share in or is a partner" he said.

Employees will not be banned on taking up another job if the facility is shutting down or they are not paid salaries for more than 60 days. But in such cases the employee must alert the Labour Ministry and submit a report from the Inspection Department within two months, Al Suwaidi added.

Alternatively, employees can also approach the Labour Ministry in cases of unfair dismissal from work without justification; termination before the contract period ends; denial of contract renewal without a valid reason; etc. However, employees should be clear of any breach of practice.

Al Suwaidi said, as per the new amendments, all categories of workers have the right to transfer jobs, but did not specify the number of times a worker can transfer employment.

"The system of transferring sponsorship, which has been valid for more than 30 years, is abolished," he said and called on employers to speeden up renewal of labour contracts.

Meanwhile, according to a source in the ministry, establishments that fall under Category 1 is exempted from providing a bank guarantee.

The Ministry of Labour has amended the labourers' Visa Transfer Law, which, I believe, are in favour of both - the labourers and the labour market. The ministry has ceased the previous condition that obligates the labourer to complete one year continuous service for his/her employer before being permitted to transfer his/her visa to another employer.

According to the new rule, the Ministry of Labour no longer requires such a condition. So, any labourer who has not completed a year's service for his/her employer may transfer to another employer after obtaining a No Objection Certificate (NOC) from the employer to transfer the visa to another employer, provided that the newly imposed fees should be settled. Such fees are called "the one year non-completion fees" which is calculated at the rate of Dh500 per month. For instance, if the employee continues a period of two months service only then he/she would be obliged to pay a fee of Dh5,000 for 10 months.

Now any labourer, who completes a period of  years service and who could not obtain an NOC, can resign and can approach the Ministry of Labour and the ministry - as per his demand - will cancel the visa and apply a six-month ban. With the new rules and upon completion of three years' service, this ban can be lifted and the employee can transfer to another employer without the need to obtain such NOC from the previous employer, provided that the newly imposed fees should be settled in addition to the visa transfer fees. Such new fees are called 'ban lifting fees'. Worth saying is that this new law is not applicable in Abu Dhabi but might be in the future. Therefore, the reader as per the new law will not have any problem as long as the company has promised to grant him a n NOC to transfer his visa.