Final Exit with unpaid Bank Loan in Saudi Arabia

I have an unpaid loan from a bank in Saudi Arabia, I have already gone on final exit, what course of legal action my bank can adopt?

Question by Visitor: Steve, I am writing this for my friend, who just came from KSA for his vacation but unfortunately, his company sends him a demobilization letter. He has a big amount of loan from SABB or SAMBA Bank.

At the same time, the company transferred his End of service benefit to his home country bank account. He did not go back to KSA for final exit procedure because of the bank loan. His question is that

  • Will the loan be a problem in the future?
  • Can they take legal action against him?
  • If he finds any job in Qatar or Dubai can he go?
  • How bank react to their debt from the person who already left from KSA?

Can bank contact another country for their loan amount? He told me there is an unwritten law is that the bank will write off once the person left the country is that correct? He doesn't have a credit card.

Answer by Steve: According to this situation, your friend has committed a fraud by not paying off the amount of loan to the SABB or SAMBA Bank. He could have asked his employer to transfer the money of End of Service Benefits to the Saudi Bank account and then could pay off his money. Anyways, I would like to answer your questions one by one;

  • The unpaid loan can always be a problem in the future if he comes to Saudi Arabia.
  • They can also file a fraud case against your friend in Saudi Arabia and contact your home country as well.
  • Yes, he can easily go to any other country for a job.
  • It depends on the discretion of the bank. Normally banks register a complaint with the police department for the recovery of loans.

If the amount of loan is high, they can also contact your country for the recovery. In the case of a credit card, your friend will be blacklisted for the credit cards from all over the world.

Comment by Visitor: Thanks a lot, Steve, in my point of view my friend didn't commit fraud because he was ready to pay if he has a job (unfortunately company demobilized him) if that time he approaches the bank and request to solve this issue, may be a problem for him.

As per your answer most probably we will get a visa to UAE, his concern is there any possibility that once SABB or SAMBA Bank knows that person is in UAE and take serious action against him like he cannot go to India until he remits all loan amount or put him in jail. My friend took a loan from the Saudi bank; he is ready to pay monthly once he settled there.

My friend has a Saudi Arabian company’s demobilization letter. (He can show what happened was not his fault) He is really worried; because he is really suffering a lot for his money problem. He is the only person taking care of a big family. He used that loan money for his 2 sisters’ marriage. Right now he has nothing left.

Answer by Steve: Brother, it is up to your discretion to think about this act whatever you want. But legally speaking it is a fraud. Anyways, since he is willing to repay the debt, he can contact the SABB or SAMBA Bank himself once settled there.

He can renegotiate with them for the payable amount. They have every right to start any action against him (normally they do not do it for a small amount of loan) but if he will contact them himself, the situation would be different.

The plan should be to settle down in UAE for the first 3 months and after that contact SABB or SAMBA Bank. The possibility of taking any action by the bank cannot be ruled out but the probability is very unlikely.

It is my suggestion to everyone living in Saudi Arabia on an Iqama to not to leave Saudi Arabia on a final exit without paying your bank loan. Later, it becomes more difficult to pay it and you face other visa complications as well.

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