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Loan - Clearance Certificate?


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#1 fruity

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Posted 25 July 2010 - 07:57 AM

Hi all. Just a quick question re clearance certificates after a loan is completed. Is it necessary that I get one? I can't believe it costs AED200 just to get a letter saying my loan is cleared! So, my question is, is it really necessary that I get one? I don't have any liabilities with anyone/any place, so no one's asking me to get one. But do you think I'll need it later? BTW, this loan isn't a car loan or a housing loan. It was just a personal loan.

Any advice is greatly appreciated. Thanks.

#2 camelchaser

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Posted 25 July 2010 - 04:22 PM

If you are moving banks and intend to get a loan then I would suggest getting one.

When I left the shambles that is HSBC I begrudgingly paid 200dhs for one just to ensure I didn't have to step foot in one of their hellhole ever again.

The clearance certificate itself said it was only valid for 30 days from the issue date - why exactly they put that on there I don't know.

#3 fruity

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Posted 25 July 2010 - 05:06 PM

If you are moving banks and intend to get a loan then I would suggest getting one.

When I left the shambles that is HSBC I begrudgingly paid 200dhs for one just to ensure I didn't have to step foot in one of their hellhole ever again.

The clearance certificate itself said it was only valid for 30 days from the issue date - why exactly they put that on there I don't know.


It has a validity period?! Geez, then I might as well not get one. What a waste of 200 dhs. I don't need to submit it anywhere, was just thinking of getting it as a proof that it's paid off. But if it has a validity period, then I'll keep the 200 dhs instead! Though the bank I'm with is RBS. Not sure which is worse, HSBC or RBS? Hehhe... But they're all pretty much the same so I'm pretty sure RBS letter will be pretty much the same as well.

Thanks for the reply camelchaser. :)

#4 Pandatwins

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Posted 27 July 2010 - 01:14 PM

We never had to pay for a clearance certificate when our car loan finished.

#5 fruity

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Posted 27 July 2010 - 01:15 PM

We never had to pay for a clearance certificate when our car loan finished.


What bank was this? If you don't mind me asking.

#6 kala76

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Posted 27 July 2010 - 01:59 PM

We recently got a clearancce letter for our car loan as well and did not have to pay. We used ADIB.
Pretty good service actually, they even gave us some money back as we paid off our loan well in advance. Very nice of them!

#7 Pandatwins

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Posted 27 July 2010 - 02:05 PM

Penguin - it was an Indian bank, Bank of Baroda. DH used to get paid in cash and they were the only bank willing to lend to him at the time (3 yrs ago).




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