Delinquency

Delinquency occurs when a borrower fails to make their EMI on time. In the UAE, a missed payment can result in late fees and may be reported to the Al Etihad Credit Bureau (AECB), which will  negatively impact the borrower’s credit score. 

If payments continue to be missed, the loan may move into default, triggering collection actions, legal notices, and potential court proceedings. In certain cases, the bank may enforce its security by informing the DLD and applying to the Execution Court to sell the property through auction to recover the outstanding debt.

Borrowers are typically encouraged to contact the bank early, as certain banks do offer restructuring options before escalation.