The Debt Panel: ‘Can the bank use my gratuity to pay off my loan?’ – The National

The Debt Panel: ‘Can the bank use my gratuity to pay off my loan?’ – The National

The Al Ain resident from South Africa, who is switching jobs, wants to keep the payment to buy a house. I plan to resign from my job in Al Ain to move to another post but only after securing new employment for similar pay.. I have concerns over how my gratuity will be handled as I have an outstanding loan.. You should consider putting a portion of your final settlement towards the balance of the loan so you could make a significant headway to being debt free.. Make sure to notify your bank as soon as you've agreed terms for your new job.. It will make the transition easier if your new employer is categorised as an approved company for personal loans in your bank as they may agree to release your gratuity once your first salary is transferred from your new employer.. Now that your consolidated loan is from your primary bank, the bank will automatically be notified when your end-of-service benefit reflects in the salary-linked account.. The bank will then be prompted to freeze the funds in your account since you have an active outstanding loan with them.. The norm may be to temporarily freeze a bank account