Al Ain court orders man to repay Dh472,667 to bank over unpaid personal loan

Al Ain: An Al Ain court has ordered a man to repay Dh472,667 to a bank after he defaulted on instalments linked to a personal loan, according to a ruling issued by the Al Ain Court for Civil, Commercial, and Administrative Claims. 

The case was brought by the bank, which said it had extended banking facilities to the defendant at his request, but that he later stopped making the agreed repayments. The bank sought recovery of the outstanding balance, along with interest, legal costs and related expenses.

Court documents, according to Emarat Al Youm, show that the loan agreement provided the defendant with financing of Dh615,000. An appointed banking expert found that, including accrued interest up to May 2025, the total amount due had reached Dh748,084, with a net outstanding balance of Dh472,667 owed to the bank.

The court said the findings of the expert report were supported by the evidence on file, including the loan agreement, account statements and financial documents submitted by the bank. It noted that the defendant failed to appear in court or present any defence challenging the claim.

In addressing the request for interest, the court said late-payment interest serves as compensation for the damage suffered by a creditor when a debtor delays payment despite being able to meet their obligations. Given that the defendant had defaulted on a fixed-term loan, the court ruled that the bank was entitled to such compensation.

The court ordered the defendant to pay Dh472,667, along with late-payment interest at a rate of 5 per cent per year from the date the lawsuit was filed until full settlement, capped at the value of the principal debt. It also ordered him to cover court costs, Dh8,785 in document translation and expert fees, and Dh300 in legal fees, while rejecting all other claims.