What happens for leaving Saudi Arabia with unpaid loan?

Many people want to know the consequences of leaving Saudi Arabia with unpaid loans or credit card bills. Here is the complete guideline on the subject.

• Can we get the final exit with a car on the lease?

Failing to repay a loan in Saudi Arabia

Reschedule the loan

In case an individual fails to pay a loan or credit card bill in Saudi Arabia, a bank is not allowed to;

• Block account or balance.
• Deduct more than one monthly installment for each loan within a single pay cycle.
• Withhold or deduct End of Service Benefits of the individual.

In case of a change in the circumstances of the borrower (job termination), the bank must reschedule the debt without charging extra fees or interest.

Event of Default

A borrower is considered to be in default in Saudi Arabia for not paying the loan installments or credit card bills;

• for more than three consecutive months or;
• five separate months throughout the finance period. 

Legal case in the court

In case of default, the lending bank may file a civil case against you to recover the outstanding loan or credit card bills. The court may;

• Deduct money from your bank account.
• Stop you from leaving Saudi Arabia.
• Detain you when you re-enter the country. 

In the case of Death

If an individual fails to pay a personal loan or credit card bills due to death or permanent disability, the bank must exempt him from the payment. The banks in Saudi Arabia cannot claim or deduct money from the deceased person’s bank account.

Source: SAMA Debt Collection Regulations and Procedures

Final exit with an unpaid loan

Unless your loan installments or credit card bills are overdue, there is no problem in getting a final exit visa from Jawazat and hence leaving Saudi Arabia with an unpaid loan.

In case of failure to pay off 3 consecutive loan installments, the bank may register a case against you in the court which might create problems in getting the final exit visa.

After the full settlement of the bank loan in Saudi Arabia, ask for a clearance certificate from the bank. 

After a certain number of months of missed payments, the bank hands over your account to a collection agency. These agencies will find your contact details and approach you to recover the debts.

Can I return to Saudi Arabia with an unpaid loan?

You can come back to Saudi Arabia if your bank has not lodged a legal case against you in Saudi Arabia for the collection of dues. Unfortunately, there is no way to check if they have registered a legal case against you.

Generally, banks register a legal case;

• After 3 months of undue payments and;
• The amount of default is more than SR 25,000.

If the bank has registered a case, the Saudi Embassy in your home country will stamp your visa but you will be detained at the airport after the immigration.

Can I return to GCC countries with an unpaid Saudi loan?

However, if you leave Saudi Arabia with an unpaid loan, you can easily enter any other country including GCC countries.

Time-Barred Debt

Under the statute of limitation of the new Commercial Courts Law enacted under Royal Decree No. M/93 dated 15/08/1441H, which came into effect on 16 June 2020, a debt becomes time-barred after 5 years.

However, it is only applicable if the bank did not try to approach you during the last five years to repay the debt.