Non Payment Of Personal Loans Drives 15 Filipinos To Prison
Seven percent of jailed Filipinos in Dubai and Ajman prisons are due to non-payment of personal loans and bounced cheques, To be precise 15 people are jailed for the said reason.
“There are many reasons why this could be happening. Based on the accounts of people we have spoken to, the main reason why they fail to pay is because they lost their jobs, they opened a business that went bust and went further into debt, or because they had to send money home for their daily needs or for emergencies,” Labor Attache Domingo of the Philippine Consulate General in Dubai, told.
Domingo suggested alternative form of loans and avoid borrowing money in UAE where one should take the risk which can send them to prison for unintentional non-payment of loans.
She said Landbank of the Philippines in partnership with the Overseas Workers Welfare Administration has its OFW Reintegration Programme which allows active OWWA members to borrow P100,000 to P2 million to start a business.
The loan amount is given at a 7.5 percent interest rate, with the duration for payment being seven years including a 2 year grace period.
“If they need to take a loan, it’s good to borrow from Philippine government entities or banks because under Philippine law, no one can be imprisoned because of debt,” Domingo said. “They can apply for the loan here and processing will be done in the Philippines.”
Pag-IBIG has packages for active members who are planning to build homes. People who intend to use their savings for investment, a minimal value of AED2,400 is available in an Adopt-a-Farm scheme by the Philippine government and a non-government organisation called the Dubai Entrepinoy Reintegration Programme.