Driving the deceased loans is conditional on the absence of assets, legacy, or “solidarity”

Bankers said that the loans of the deceased client fall if they do not have money in the account, or a legacy from which the debt can be deducted, or in the absence of inheritors of solidarity and solidarity with him in the debt.

They assured «Emirates Today» that the banks have the right to deduct from the balances of the deceased customer or sell any mortgaged properties, in order to ensure the loans the customer took before his death, explaining that if the loan is believing in it from the beginning, whether it is personal or real estate, then the heirs do nothing, and the deduction of the deceased customer’s account is not deducted, while the bank communicates directly with the insurance company, to finish the procedures as long as the heirs are provided The required documents, such as death certificate and others.

They stressed the importance of informing the bank of the death, and not dealing with the account, whether by withdrawing or depositing until the completion of the procedures.

This came in response to inquiries received by «Emirates Today», related to the extent of banks ’entitlement to the opponent to the balances of the deceased client, if he had a personal loan that is not insured.

Loan insurance

In the details, the banking expert, Amjad Nasr, said, “Most banks leave the customer the freedom to take insurance on personal loans, as in the event of death it can be referred to, but insurance on real estate loans is mandatory and a basic condition, and in all cases if the personal loan is a believer over it, there is no problem with the heirs in this case, and they only have to inform the bank and provide the death certificate, and then the bank addresses the insurance company and ends the procedures The real estate is that he is mainly believing in him. ”

Nasr added: “In the event that the personal loan is not a believer in it, and the bank found balances in the account of the deceased customer, the remaining amounts are deducted in his fullness from them complete or part of them or the debt is final, as long as there are no balances or legacy and the deceased’s heirs are not in solidarity with him in the debt, as the bank is entitled in this case to refer to the rest of the debt on the heirs.”

Nasr explained that «there is no specific period to inform the bank of the death of the death, but it is preferable to be immediately after the death, and it must not be dealt with at the expense of the customer until the procedures are completed and the ban on the balances is removed according to what the judicial authority decides if the customer leaves money or has mortgage real estate or others.

End of service bonus

Regarding whether the bank has the right to reserve the end of the customer’s service reward if he dies and a debt, the banking expert Sheikha Al -Ali said that “the bank has the right to settle the amounts due to the deceased customer in accordance with the terms and conditions of the contract, as long as there is no insurance for the loan in the event of death, and the heirs usually advise to review the loan contract, to ensure that there is insurance that covers no, as it is preferable to take insurance Personal loan, in order to avoid problems and seizure on the balances in the event of death.

She pointed out that “the value of the loan insurance is not large and the banks in the past were imposed on personal loans, just like the real estate loan, but finally we started finding many banks that the customer exempts them as a kind of promotion even though he is in the interest of the heirs.”

Humanitarian cases

For his part, the banker Hisham Abdel -Qader said: “There are exceptional humanitarian cases that banks study in each case separately, especially in Islamic banks, in which the heirs are exempt from paying the remainder of the debt or seizure of the end -of -service gratuity, such as if the heirs are a woman and young children and they have no income, or older parents.”

But Abdel -Qader explained that “this situation is subject to special approvals from within the supreme bank’s management, and it cannot be measured, as the basic principle is to fulfill the debt, whether from insurance or from the estate and the balances preserved in banks or real estate and so on.” He pointed out that “bank’s money in the end is the property of shareholders and they are profitable parties that take into account the preservation of the money of the depositors and shareholders.”