EMI on, but no loan

I have a current account with salary transfer facility in RAKBANK. An agent called me to ask if I wanted a personal loan. I asked him what the required documents were. He said I would just have to provide a copy of my passport with visa page, Emirates ID, labour card and salary transfer letter. I asked him why I would need a salary transfer letter, since my salary was deposited directly at RAKBANK?

He told me that my company was not listed in their bank, but still, I could apply for a personal loan. I gave the bank all the documents, except the salary transfer letter.

My company refused to provide me with a salary transfer letter because my salary is deposited to RAKBANK directly. So I informed my agent that I had an issue with my salary transfer letter and my company could not provide it as per their requirements. I told him it was better to cancel my loan. After many days, the agent called me to say that my personal loan had been approved internally, and my equated monthly instalment (EMI) was Dh3,951, due on the 30th of every month. I asked him how my personal loan had been approved, since I didn’t have a salary transfer letter? My agent told me that there were no issues, and he would call my human resources (HR) department to say that any format would do.

On July 22, 2015, the money was deposited to my account, but I couldn’t withdraw it because my salary transfer letter was still pending. I asked the agent what would happen to the EMI, if my salary transfer letter was delayed? Would they keep on deducting? He told me not to worry, and said it would not be deducted unless I received the money. Then, I called my HR department and asked if they could provide a salary transfer letter, and they did so. Immediately, I forwarded it to the agent but the problem still remains — I cannot withdraw the money because my salary transfer letter is not as per their format. It comes to a point that my EMI has started already but I have not yet received the money. I called my agent immediately to cancel the loan, because there was no assurance that my salary transfer letter would be accepted by RAKBANK.

I went to RAKBANK (BurJuman Branch) and filed a complaint to reverse the money that they had deducted, back to my account. The customer care representative told me that after two days, somebody would call me regarding my complaint. Later, the customer care representative called me and said they would update me after three days. After three days, the customer care team called and said there was no feedback yet, and asked me to wait for four days to resolve the complaint. I told them that I could not wait anymore. Until now, nothing has happened. I need Gulf News’ help regarding how to get them to resolve and refund my money, and to cancel my personal loan. I would greatly appreciate any assistance.

From Mr Robert Judal Regalado


Mr Ian Hodges, Head of Retail Banking, RAKBANK, responds:

Thank you for you giving us an opportunity to justify our stance on the issues raised by Mr Regalado.

The matter has been investigated and we note that a personal loan was provided to Mr Regalado in July 2015 based on the application form duly signed and accepted by him. Further, verbal consent was taken from Mr Regalado before processing the loan.

Prior to receipt of Gulf News’ email, Mr Regalado was in touch with the Bank and expressed his inability to complete documentation as per prescribed format. His concerns have now been positively resolved and he is satisfied with our response.

Mr Regalado responds:

Thank you Gulf News for the immediate response. The issue has been resolved. They cancelled my personal loan and returned my money. I will go to their branch to secure a copy of the cancellation certificate. Once again, thank you so much. It is a big help for me and my family as well.

(Process initiation: August 17. Response from organisation: August 18. Reader confirmation: August 18.)

Editor’s note: Do you have similar issues that you would like to raise with us? You can write to us at readers@gulfnews.com.