Debt Panellist 2: Ambareen Musa, founder and chief executive of Souqalmal.com
It is unfortunate that you lost your source of income immediately after taking on a big financial commitment. Now that you’re in Pakistan, you must try your best to come up with the financial resources required to pull yourself out of debt. In fact, if you can offer to make a lump sum payment to settle your loan, the bank could be willing to waive off a chunk of the interest or reduce the overall debt owed.
Do you have any property in your name or your father’s name in Pakistan? You can apply for a loan against this property as collateral. You can even consider applying for a loan against gold, which is a popular secured lending product in Pakistan. If you don’t have assets that you can tap into or investments that you can easily liquidate, it may also be worth checking with your close relatives if they can extend an interest-free loan to you. The end goal is to use whatever financial resources you can gather to settle your debt in the UAE.
As a borrower, it is in your best interest to use debt responsibly. You took out a loan amounting to Dh200,000, and after using Dh120,000 to help with your father’s financial commitments, have you accounted for the remaining principal? If you haven’t used up all of the loan, use the remaining principal to offer a partial repayment to the lender. This will reassure the bank of your commitment to paying off the debt, and may stave off any adverse legal action against you.
It also looks like you’re having a one-sided conversation with your bank. Instead of simply writing to the bank asking them not to impose a travel ban, you must try to initiate a negotiation with your bank, asking them to offer you a revised repayment plan. A restructured repayment plan can get you access to an extended loan tenure and waiver of late payment fees, which can allow you to stick to regular repayments without the risk of defaulting.
You mention you have already travelled to the UAE earlier in search of employment. Maybe, you should consider finding a job outside of your industry if that’s an option, or starting off small and looking for a junior role within the hospitality industry just to get your foot in the door.
Remember, whether you’re in the UAE or outside the country, the debt you owe has to be repaid eventually. It is easier to settle the loan in full if you’re unable to secure a job here in the future. If not, you will have to find the most economical way to regularly transfer money to the lender to keep up with your monthly repayments.