I do not have enough funds to pay for all the costs. How can I avail of loans? What are the consequences?

There are private companies such as banks or micro-finance which offer loans to prospective migrants. Example of these are the fly-now-pay-later scheme. Some are legitimate while others are not. In Bangladesh the best option for potential migrants to avail loan from Probashi kallayan Bank. Be careful also of recruitment agencies offering loans or salary deductions.

If you avail of loan, understand the terms and conditions very well. Some of the things you have to watch out for are:

  • Are the terms and modes of payment, interest rates if allowed, penalties for failure to pay, etc. in accordance with national laws? Are they onerous or excessive?
  • If deducted from salary, are there additional or “hidden” fees or charges?
  • Will the loan lead to debt bondage where the migrant worker be forever indebted to the employer or recruiter? Will this result to a migrant worker being ordered to do work beyond the regular terms and conditions in order to pay for the loan?
  • Will it be a cause for non-issuance of exit permits under the Kafala system (especially applicable to Middle East countries)?