Security cheque definition/meaning
Is a protective cheque required by banks in Dubai
as a precondition before disbursing a personal loan, auto loan,partner loans or any other loans to any stakeholder in Dubai and the UAE.It is a security tool used to make follow up in the event that a client defaults on meeting their loan repayment obligation.
It is usually filled,signed and the amount and date sections are left blank.Once bounced,it becomes a criminal case in Dubai (UAE) and legally enforceable .For more details check security cheque law UAE .
Security cheques will ensure clients meet their obligations on time and thus this helps banks by carrying out their operations smoothly since disruptions in cash inflows are minimised.Security cheque for personal loans in Dubai and security cheques for auto loans in Dubai are widely used by all Banks in Dubai.
Personal loans in Dubai without salary transfer,personal loans in Dubai for expatriates,auto loans in Dubai,and any other related loan in Dubai,will require a security cheque before funds are disbursed.