Pay off loan with Provident fund
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Pay off loan with Provident fund
guys,
I was wondering if the provident fund could be used against an outstanding bank loan to clear it and leave dubai??
Anyone any experience of this or know someone that could offer some guidance?
Thanks all
I was wondering if the provident fund could be used against an outstanding bank loan to clear it and leave dubai??
Anyone any experience of this or know someone that could offer some guidance?
Thanks all
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If the loan is registered with EK, ie you had to get a letter from EK for the loan, it is guaranteed/secured with your Provident fund.
Hence when car loans etc are paid off you have to take a letter from the lender to the Service Centre to get the guarantee removed.
Hence when car loans etc are paid off you have to take a letter from the lender to the Service Centre to get the guarantee removed.
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Thanks,
I have a sizable personal loan that I was gonna pay off and leave over the next few years but have decided I'd prefer to leave earlier and just clear it with the fund....hope this attainable! Don't want to be held ransom at ek due to loan and unable to leave even with a sizable fund to clear it!
I have a sizable personal loan that I was gonna pay off and leave over the next few years but have decided I'd prefer to leave earlier and just clear it with the fund....hope this attainable! Don't want to be held ransom at ek due to loan and unable to leave even with a sizable fund to clear it!
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I have a sizable personal loan that I was gonna pay off and leave over the next few years but have decided I'd prefer to leave earlier and just clear it with the fund....hope this attainable! Don't want to be held ransom at ek due to loan and unable to leave even with a sizable fund to clear it!
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If your loan is able to be cleared with the Provident Fund, it can't be THAT sizeable...so having said that, why not apply for a loan from outside of the UAE, use that to pay of your UAE loan, then pay off the second loan with the PF once safely away from the loving embrace of Emirates Airline?
Surely qualifying for a bridge loan should be possible, while demonstrating employment at EK, and the PF as collateral? Even if the rates of the second loan were usurious, you would only have to hold it for a very short term.
A major, major Life Rule is never willfully put yourself in a position where monetary circumstances will give your employer undue control over your life. (Which leads me to question why anyone would join EK with the shackles of the present bond terms, but that's another topic).
Surely qualifying for a bridge loan should be possible, while demonstrating employment at EK, and the PF as collateral? Even if the rates of the second loan were usurious, you would only have to hold it for a very short term.
A major, major Life Rule is never willfully put yourself in a position where monetary circumstances will give your employer undue control over your life. (Which leads me to question why anyone would join EK with the shackles of the present bond terms, but that's another topic).
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Try having a talk to fleet, you won't be the first to have wanted to transfer your pension fund to pay off a loan.
You won't be the first to mention to fleet that you are thinking about moving on either.
As for the fund I believe it kicks in about 3 months after joining (line check) so 5 years and 3 months you take 75% (approx 83% because of your contribution vs companies contribution) and 7 years and 3 months for the full amount.
Could someone please correct me if I'm wrong on these figures.
As for borrowing money to move into the UAE to pay off a loan, with borrowing fees insurances and exchange rates it's going to be an expensive exercise. Personally I can not borrow money in my home country as I'm not paid in that country, the lending laws are very tight in some places after 2008.
I would be interested to know how you get on.
Good luck, cheers Enos
You won't be the first to mention to fleet that you are thinking about moving on either.
As for the fund I believe it kicks in about 3 months after joining (line check) so 5 years and 3 months you take 75% (approx 83% because of your contribution vs companies contribution) and 7 years and 3 months for the full amount.
Could someone please correct me if I'm wrong on these figures.
As for borrowing money to move into the UAE to pay off a loan, with borrowing fees insurances and exchange rates it's going to be an expensive exercise. Personally I can not borrow money in my home country as I'm not paid in that country, the lending laws are very tight in some places after 2008.
I would be interested to know how you get on.
Good luck, cheers Enos
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The info about 75% and 100% at 5 and 7 years is correct. (From final linecheck). Given that you don't receive the PF payout until several weeks after your last day of service, and you won't be able to get out of the UAE without clearing the loan, then the PF as payment for the loan is a non-starter - unless you can get some special permission. Good luck with that.
I agree a secondary loan isn't ideal. But the cost of doing so I would simply regard as money well spent to move on. Of course if you aren't able to access the funds, the suggestion is moot. It makes perfect sense to offer the PF as payment for the loan, but I think the chances of obtaining funds elsewhere are greater than those of actually getting EK to agree to a reasonable solution. Especially one that helps one of the slaves to escape.
Of course there is another option. Just do a runner and then the PF will be used against the loan, just as desired. Problem solved!
I agree a secondary loan isn't ideal. But the cost of doing so I would simply regard as money well spent to move on. Of course if you aren't able to access the funds, the suggestion is moot. It makes perfect sense to offer the PF as payment for the loan, but I think the chances of obtaining funds elsewhere are greater than those of actually getting EK to agree to a reasonable solution. Especially one that helps one of the slaves to escape.
Of course there is another option. Just do a runner and then the PF will be used against the loan, just as desired. Problem solved!
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[/QUOTE]As for the fund I believe it kicks in about 3 months after joining (line check) so 5 years and 3 months you take 75% (approx 83% because of your contribution vs companies contribution) and 7 years and 3 months for the full amount. [/QUOTE]
Between 5 and 7 years on the line you get 75% A, 100% B+C (as applicable)? Can somebody remind me what you get less than 5 years and if that amount can be used against the bond
Between 5 and 7 years on the line you get 75% A, 100% B+C (as applicable)? Can somebody remind me what you get less than 5 years and if that amount can be used against the bond
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As for the fund I believe it kicks in about 3 months after joining (line check) so 5 years and 3 months you take 75% (approx 83% because of your contribution vs companies contribution) and 7 years and 3 months for the full amount.
Between 5 and 7 years on the line you get 75% A, 100% B+C (as applicable)? Can somebody remind me what you get less than 5 years and if that amount can be used against the bond
Between 5 and 7 years on the line you get 75% A, 100% B+C (as applicable)? Can somebody remind me what you get less than 5 years and if that amount can be used against the bond
Last edited by PPRuNeUser0215; 17th Jun 2016 at 15:26.
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The info about 75% and 100% at 5 and 7 years is correct. (From final linecheck).
I left last year exactly 7 years from date of joining and I got 100% of everything! It may not kick in until final line check but the payout date is based on DOJ from my ecperience...
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I have asked the Provident guys directly. Provident starts 3 months after you join ( nothing to do with line check ) and you have to complete 5 years of contribution ( or 7 ), from that date.
I understand that it used to be from joining date. Not anymore but best is to ask the Provident people in which case you are falling in.
Edited because I found the reply I had received from Nick F.
[quote] For joiners after 1st August 2009, the 5 and 7 years qualifying service is timed from the date of joining the scheme (gets called 'scheme service' in the rules) rather than date of joining the company, so yes 3 months after. So basically in your case the scheme joining date was [\quote]
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Did anyone find out the answer to apron's question? I would like to leave earlier than planned and would like to know if there are any banks that you can negotiate with.
Thanks in advance.
Thanks in advance.
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C Fund
Apron, do you have any voluntary contributions in the C fund? If so, why not cash out the C fund and pay your loan off? You can apply for the money and receive it within about 14 days? (Please correct that time frame if anyone has more accurate info)
Cheers
Cheers
