Indians default payment of Rs 50,000 cr in UAE banks and Keralites top list
Dubai: Major banks in UAE are planning to initiate action against Indians who defaulted payments of loans and credit card bills. It is reported that the banks in UAE suffered a loss of more than Rs 50,000 crore after Indians did not remit the loan and credit card bill payments.
At the same time, sources revealed that most of the people who defaulted on payments are Keralites.
UAE banks has decided to initiate action against the loan defaulters after the Indian government notified that order issued by civil courts in UAE over financial transactions is equal to the order of district courts in India.
According to reports, over 70 percent of the defaulted payments are loans to huge business firms. The rest of 20 percent include payment of credit card bills, vehicle loan and individual loan.
At the same time, Non-Performing Loan ratio of UAE banks rose to 7.5 percent in 2017. Following this, these banks merged together to handle financial crisis.
The largest banks in UAE, including Emirates NBD and Abu Dhabi Commercial Bank, have been initiating action against the loan defaulters. It is hinted that some other banks headquartered in Qatar and Oman will join these banks.
Sources revealed that these banks are planning to publish the details of the business groups who have defaulted on payments and left for India.
UAE banks have not made any official announcement on taking action against the Indian defaulters.
Though the Non-Performing Loan ratio was 7.5 percent in 2017, it improved in the following years. But there are many people who left UAE after defaulting loan and leaving their commercial and business firms. These loan defaulters not only put the banks in financial crisis but also left thousands of people unemployed.