Kuwait's Gulf Bank files cases against Kerala nurses for loan defaults

Ten cases registered so far as Gulf Bank alleges large-scale loan default by Kerala expats

The Gulf Bank of Kuwait has filed multiple police complaints in Kerala, alleging that several individuals, primarily nurses from the state, have defaulted on significant loans they availed while working in Kuwait. These cases, registered last month, are based on complaints lodged by Mohammed Abdul Vassey Kamran, Deputy General Manager of Gulf Bank, according to The Indian Express.

 

Loan defaults and cheating allegations

 

Advocate Thomas J Anakkallunkal, assisting Gulf Bank in Kerala, stated that approximately 1,400 individuals have defaulted on loans, with a majority being nurses. “These individuals worked in Kuwait’s government services and secured loans using their salary certificates,” Anakkallunkal told The Indian Express.

 

 

The bank claims these loans were intended for personal use, but the borrowers failed to repay, leading to accusations of cheating.

 

Investigations are ongoing to identify all defaulters, with more complaints likely to be filed in the coming days.

 

Police investigation and legal concerns

 

So far, 10 major defaulters have been identified, with complaints registered at various police stations in Ernakulam and Kottayam districts. However, police have raised doubts about the legal validity of the allegations.

 

A police officer familiar with the case remarked, “We are uncertain whether these cheating and criminal conspiracy charges will withstand legal scrutiny. Such charges typically apply only if loanees had forged documents to secure loans. Additionally, the bank’s internal mechanisms for granting loans without collateral security need to be questioned.”

 

Nurses at the centre of the crisis

 

A significant proportion of the defaulters are nurses who had borrowed funds to cover high recruitment costs for jobs in Kuwait. Jasmin Shah, president of the United Nurses Association, explained, “Many nurses expected to repay the loans from their salaries. However, job losses during the Covid-19 pandemic disrupted their plans, leading to defaults. Those who returned to Kerala faced difficulties rejoining the workforce due to travel restrictions, and some continue to struggle with unemployment.”

 

Shah highlighted the disparity in salaries between Kuwait and Kerala as a critical factor. “In Kerala, a nurse’s salary is less than Rs 25,000 per month, whereas the EMI for Kuwait loans is around Rs 100,000, making repayment nearly impossible,” he noted.

 

He added that while most defaulters face genuine financial hardships, a small number deliberately defaulted and moved to other countries to avoid repayment.