Accommodation loan

Accommodation loan

A legal agreement signed by two parties whereby one of the co-signers guarantees credit liability for the other co-signer.  Accommodation loans, often called accommodation endorsements or bills, allows the guarantor to add strength to the creditworthiness of the other party.  If the receiving party defaults on its debt, the guarantor is then responsible for the debt of the other party. See: Covenant
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It is not clear if Pannu took up the accommodation loan, but it is understood he did claim reimbursements.
In addition, company maintained accommodation would go some way towards incentivising staff (or, alternatively, the offering of housing accommodation loans or allowances), particularly against the backdrop of ever increasing rental and real estate in the UAE.
As for mortgages, the Directive will cover consumer credit plus a mortgage but standard accommodation loans continue to be excluded from the scope of the Directive;