What happens for leaving Saudi Arabia with unpaid loan?

Consequences of Leaving Saudi Arabia with Unpaid Loans or Credit Card Bills

Many individuals inquire about the implications of departing Saudi Arabia with outstanding loans or unpaid credit card bills. Here’s a comprehensive guideline on the matter:

Loan Repayment Failure

Rescheduling Options:

  • If an individual fails to repay a loan or credit card bill, Saudi banks are prohibited from:
  • Blocking accounts or balances.
  • Deducting more than one monthly installment per loan in a single pay cycle.
  • Withholding or deducting End of Service Benefits.
  • In the event of changes in the borrower’s circumstances, such as job termination, banks must reschedule the debt without additional fees or interest.

Default Event:

  • Default occurs if loan installments or credit card bills are overdue for:
  • More than three consecutive months or,
  • Five separate months within the finance period.

Legal Proceedings:

  • Upon default, the lending bank may file a civil case to recover outstanding debt. The court may:
  • Deduct funds from your bank account.
  • Prevent you from leaving Saudi Arabia.
  • Detain you upon re-entering the country.

In Case of Death:

  • If a borrower fails to pay due to death or permanent disability, banks must exempt them from payment and cannot claim funds from the deceased’s account.

Final Exit with Unpaid Loan

  • Unless loan installments or credit card bills are overdue, obtaining a final exit visa from Jawazat and leaving Saudi Arabia with an unpaid loan poses no issues.
  • However, failure to pay three consecutive loan installments may prompt the bank to file a legal case, hindering the final exit visa process.

Post-Loan Settlement:

  • After settling the bank loan, request a clearance certificate from the bank.

Collection Agencies:

  • After a certain number of missed payments, banks may hand over accounts to collection agencies, which will contact you to recover debts.

Return to Saudi Arabia with Unpaid Loan

  • You may return to Saudi Arabia if no legal case has been filed against you by the bank for debt collection. However, determining if a case has been registered is challenging.
  • Typically, banks file legal cases after three months of undue payments exceeding SR 25,000.

Return to GCC Countries

  • Leaving Saudi Arabia with an unpaid loan doesn’t typically affect entry into other countries, including GCC nations.

Time-Barred Debt

  • Under the new Commercial Courts Law, a debt becomes time-barred after five years if the bank hasn’t attempted to recover it during that time.