Car Finance Key Facts

Key Facts - Car Finance ( Download)

Getting finance for the car customers have always wanted is now easier than ever….
Whether the customers are looking to buy a new or used vehicle, our Car Finance solution is their prompt path to competitive profit rates with flexible settlement terms.
Structure of Vehicle finance :
Individuals (Salaried or Self Employed) who are interested in buying a car but do not have money to pay the car dealer or seller in lump sum, the Bank helps these customers to buy their dream car by getting the finance and settle the amount in installments on monthly basis.
Murabaha: Vehicle finance transaction is carried out based on the Sharia'a-compliant Murabaha structure, where the bank purchases the Vehicle and then sells it to the customer on the basis of deferred payment at an agreed profit rate, in addition to administrative fees agreed upon in the contract signed by the customer before carrying out the transaction. This contract also includes other terms and conditions related to the repayment of the finance, after which the transaction is executed on the system and the Vehicle will be transferred to the customer.
Key Finance Features & Benefits:
- Minimum monthly income of AED 5,000/- - Competitive profit rates; as low as 2.29% flat p.a. - Finance tenure, as long as up to 5 years - Fast processing and designated approval time - Cater all customer segments (Salaried & Self Employed)
Definitions:
Debt Service Ratio: Total monthly obligations towards financial facilities as a component of monthly income.
Grace Period for 1st installment: up to 90 days from the contract signing date and may defer based on customer profile and the availed product and it is inclusive of the cooling off period which will prolong the total tenure but not the number of installments. Note: the profit rate is applicable during the grace period.
How to Apply / Application Processing and Approval:
The Car Finance is available through: - Branches - Direct Sales Team
Upon receiving the customer's request and promise to purchase for car financing, the bank evaluates the application and approves or declines it based on credit or other eligibility criteria. If approved, the bank purchases the car from the dealer or seller and sells it to the customer under a Murabaha Sale Contract. Customer will pay the Murabaha selling price to the Bank as per the agreement payment schedule in the Murabaha Contract.
As part of availing this product, the customer will be entitled to the following services and features: - Early Settlement/Partial Settlement - EMI Postponement - Due Date change - Re-scheduling - Liability letter / No liability letter - Mortgage Release (MOI/RTA)/ Temporary Mortgage Release (MOI/RTA) - Change in - Emirate Change/ Number Plate
Salaried Applicants:
- Individuals employed in UAE with monthly salary being transferred to SIB or any other Bank in UAE - Finance Tenure: up to 5 years - Minimum Salary:

Employer Segment	UAE Nationals	Expatriates
Employer Segment	STL & Non-STL	STL	Non-STL
Govt. Semi Govt. & Private TML Companies (A,B&C)	AED 5,000	AED 5,000	AED 6,000
Non TML *	AED 5,000	AED 6,000	AED 10,000

STL: Salary Transfer to SIB Account
Non-STL: Salary Transfer to Non SIB Account

Employment Duration:

Employer Segment	Employment Duration:
	UAE	GCC & Expats
Govt. & Semi-Govt. Private TML A, B & C	Upon joining	3 Months
Non-TML (Non SIB Listed Companies)		6 Months

Finance Amount:
All Nationalities and customer segments of salaried applicants (STL & Non-STL): (New and Used Car) - Minimum: AED 20,000 - Maximum: AED 1,000,000
Down Payment:
UAE Nationals (All Salaried Segments) and GCC & Expats (Salaried – STL, and/or working for TML Company): - New and Used Car: 20% Down Payment
GCC & Expats (Salaried - Non-STL and/or working for Non-TML Company): - New Car: - Car Category A: 20% Down Payment - Car Category B: 30% Down Payment - Used Car: - Car Category A: 30% Down Payment - Car Category B: 40% Down Payment
Self Employed Applicants:
- Individuals, Minimum Income From Business in the UAE: o Average Net Profit: AED 10,000 per month or o 40% of the minimum average monthly credit of AED 50,000
Length of Business:
SIB Relationship - UAE Nationals: One Year in Business - GCC & Expatriates: Two Years in Business
Non-SIB Relationship - UAE Nationals / GCC & Expatriates: Two Years in Business
Finance Amount:
All Nationalities - SIB and Non-SIB Relationship: (New and Used Car) - Minimum: AED 20,000 - Maximum: AED 1,000,000
Down Payment:
UAE National who are banking with SIB and other banks, and GCC National and Expatriate who are banking with SIB: - New and Used Car: 20% Down Payment
GCC National and Expatriate who are not banking with SIB: New Car: - Car Category A: 20% Down Payment - Car Category B: 30% Down Payment - Used Car: - Car Category A: 30% Down Payment - Car Category B: 40% Down Payment
Key Basic Documentation Requirement: Salaried Applicants
- Application form duly signed by customer - Valid UAE National ID and passport showing the residence visa - Current dated Salary certificate or Salary Transfer letter - Bank statement for 3 months showing 3 salaries - New Car - quotation from the dealer or used / old car - evaluation report
Key Basic Documentation Requirement: Self Employed Applicants
- Application form duly signed by customer - Valid UAE National ID and passport showing the residence visa - Current dated Salary certificate or Salary Transfer letter - Bank statement for 6 months Personal and / OR Business - New Car - Quotation from the Dealer OR Used / Old Car - Evaluation Report - Trade License - Copy of Chamber of Commerce Registration - Memorandum & Articles of Association
Current Profit Rates:

Profit Rate (Flat per Annum)
Salary	Customer Segment	New Car	Used Car
UAE Nationals
AED 5K ~ <10K	STL	2.89%	3.39%
Non-STL	2.99%	3.39%
AED >=10K ~ <20K	STL	2.59%	3.29%
Non-STL	2.69%	3.29%
AED ˃=20K ~ <35K	STL	2.49%	3.19%
Non-STL	2.59%	3.19%
AED ˃=35K ~ <50K	STL	2.39%	3.09%
Non-STL	2.49%	3.09%
AED ˃=50K	STL	2.29%	2.99%
Non-STL	2.39%	2.99%
Expats
AED 5K ~ <10K	STL	3.19%	3.69%
Non-STL	3.29%	3.69%
AED >=10K ~ <20K	STL	2.89%	3.59%
Non-STL	2.99%	3.59%
AED ˃=20K ~ <35K	STL	2.79%	3.49%
Non-STL	2.89%	3.49%
AED ˃=35K ~ <50K	STL	2.69%	3.39%
Non-STL	2.79%	3.39%
AED ˃=50K	STL	2.59%	3.29%
Non-STL	2.69%	3.29%
Self Employed
Not Applicable	Self Employed	3.49%	3.99%
Excellence Banking
Not Applicable	All Customer	2.29%	2.99%

EV customers will receive a prevailing discount of 10 bps across all salaried segments under the New Car criteria, including Self-Employed and Excellence Banking segments.

Fees and Charges:

Ser.	Service	Fees
1	Documentation Fee	1.00% on the finance amount (Minimum AED 500/- & Maximum AED 2,500)
2	Late Payment Fee (Obligated amount to charity)	AED500
3	Early settlement	1.00% of Principle outstanding amount (max AED 10,000)
4	Partial payment	1.00% of Principle outstanding amount (max AED 10,000)
5	Mortgage and mortgage release	FREE
6	Liability letter / No liability letter	AED 60
7	Replacement of PDCs	FREE
8	Change of due date on standing instructions	AED 25
9	No Objection Certificate to Traffic Department	FREE
10	Deal Cancellation	AED 100

Key Terms & Conditions:
- Above mentioned fees and charges do not include the Value Added Tax (VAT)
- Any application or documentation fees that have been paid to Sharjah Islamic Bank are non-refundable
- Details of our Fees and Charges are set out on the Schedule of Services and Tariffs, which is available on our website: www.sib.ae.
- In case of a delay for more than 7 days from the due date of the installment, Bank may apply the donation to Charity clause and charge 1% of defaulted installment maximum of AED 525 (inclusive of VAT) on a monthly basis until the past due installment amounts are paid. which will be donated to Charity
- If the customer is a guarantor of another customer, then the bank has the right to collect the installment from his/her accounts with SIB in case the guaranteed customer defaults to pay
- If customer is a member of the Armed Forces (MOD) and wants to make an early settlement for finance outstanding amount, early settlement fee will not be charged.
- If the customer/guarantor provides any collateral or post-dated/Security CHQs or DDA then the bank has the right to repossess the collateral or submit the post-dated CHQs to collect the payment or follow legal procedure in case of the customer defaults to pay
- If the salary is one of the securities required for the finance, customer needs to transfer the salary to the bank as soon as the required finance transaction is completed, and in the event of termination of the customer’s services by customer’s employer and transfer of End of Service benefits (EOSB) to the account, or in case of resignation or changing employer, the bank is entitled to block the EOSB and any other amounts available in the account in order to pay any overdue amount(s) of the finance and to settle any installments on its due date, or transfer the EOSB/amounts to pay the installments that have not been settled according to their due dates
- The Bank at its absolute discretion may change the agreement terms and conditions at any time by giving the customer 60 days prior notice. The notice may be given in any available means including but not limited to email, secure e-message service, and by publications on SIB website (WWW.SIB.AE)
- The Bank has the right to cancel or amend the finance approval before executing the finance transaction with a prior notice to the customer
- Once finance contract is signed, customer must abide by the terms, conditions, and fees of the finance
- Detailed General Terms & Conditions are available on the Bank’s website at the following link: https://www.sib.ae/en/personal-banking/general-terms-conditions
Calculation and Charging of profit:
- Profit is payable monthly or as approved by the Bank. - Profit is calculated on the basis of a 360 days calendar year and accrues daily, however sale price agreed upon in the contract is not subject to any change
Monthly Payments:
- Customer must make the Monthly Payments on the due dates until full amount of the car agreed is paid off (cost + profit). - The finance amount, will be calculated as per the below illustrative example:
Example: Finance amount of AED 200,000, Tenure of 5 years, and Profit rate of 2.74% flat p.a., finance details will be as follows: · Documentation Fee : AED 2,100 (inclusive of VAT) · Total Profit amount : AED 27,795.78 · Monthly Installment : AED 3,796.60
Note: Above outlined finance details in the example are for illustrative purpose only and may vary based on customer type, segment, car type and any other factor the Bank deems suitable as per Bank’s policy.
Finance Termination Amount:
Where the Contract is terminated/early settled during the contract term, the termination amount shall be the aggregate of the following:
a. Principal outstanding balance amount b. Unpaid profit amount as of termination date c. Any amount representing the costs of insurance (including any insurance undertaken on behalf of the customer in accordance with the terms of the contract) and taxes incurred by the Bank d. Early settlement amount calculated at a percentage of the outstanding balance amount set out in the above Fees and Charges section
The finance termination/early settlement amount, will be calculated as per the below illustrative example: Example: Finance outstanding amount of AED 139,533.10 with the settlement date after 14 days: · Finance outstanding amount : AED 139,533.10 · Accrued Un-paid Profit amount: AED 2,190.07 · Early Settlement Fee : AED 1,465.10 (inclusive of VAT) · Total Amount to Settle: AED 143,188.27
Note: Above outlined finance details in the example are for illustrative purpose only and may vary based on the settlement request, settlement date, customer type and any other factor the Bank deems suitable as per Bank’s policy.
Disclaimers:
- This document is provided for information and illustration purpose only based on customer request. All finances are granted at sole discretion of SIB Standard Terms & Conditions. SIB reserves the right to amend any of the above outlined key facts without any prior notice
- The Bank may also at its absolute discretion change any of the terms and conditions and Fees & Charges at any time by giving you 60 days prior notice. We may give notice of variations by any means available, including but not limited to email, secure e-message service, and by publication on our website (www.sib.ae)
- Key Facts Statement contains information about Car Finance product to help the customer compare and select the most appropriate Car Finance for the customer.
- This Key Facts Statement is not an offer of finance facility. The Bank is not obliged to provide the customer with the Car Finance described in this Key Facts Statement. The customer will need to apply for the finance and meet the Bank’s credit suitability criteria before we can determine whether he/she is eligible for this finance.
- The profit rates, fees, and charges are those that apply as at the date of production of this Key Facts Statement
- The Processing of the application leading to the disbursal of the finance may take up to 10 business days from the time the Bank receives complete documentation.
- The bank is not permitted to charge profit on accrued profit in accordance with the Article (121), Clause 3 in Decretal Federal law No. (14) of 2018, regarding the Central Bank & Organization of Financial Institutions and Activities.
- If the customer fails to pay any finance installments on the due dates, this may affect customer’s credit rating, which may limit the customer’s eligibility to another finance in the future from the Bank or other banks
- If customer wishes to make an early settlement in the future for the outstanding amount, customer will be required to pay an additional amount as an early settlement fee of 1% maximum of 10,000 AED on the total remaining principal amount of the finance, which is in accordance with the UAE Central Bank regulations, refer to: https://www.sib.ae/docs/default-source/default-document-library/services-and-charges-nov-2023.pdf?sfvrsn=891ff14c_3
- Once the customer enters into the financing contract, the customer will be bound by the terms and conditions of the financing contract. However, in accordance with the Consumer Protection Regulation and Standards, the customer has the right to a cooling-off period option. This is a right to cancel the financing contract within five (5) complete business days starting immediately after signing the financing contract (the “Cooling-Off Period”). However, the customer may choose to waive his/her right to the Cooling-Off Period.
Warning:
- If the customer chooses to waive his/her right to the Cooling-off Period, he/she will be bound by the terms and conditions of the financing contract once it is concluded between him/her and the Bank. Consequently, he/she will be subject to the risks of price fluctuation of the item sold/leased to him/her, starting from the finance contract signing date.
- Finance installments has to be paid on the due dates, and if customer fails to pay any installments for any reason, the remaining installments shall become immediately due and payable without the need for any notice and the bank may claim the remaining installments through the legal procedures
- The Bank at any time deemed necessary and without prior notice, can freeze and/or block credit balances in any of the accounts with the Bank (including any savings accounts) or liquidate any deposits, (investment deposits or fixed deposits), or any other associated account, at any time the Bank deems necessary with or without a Court order to this effect, and the Customer acknowledges that the Bank is permitted to block any amounts relating to repayment of any Financing Facilities, even in cases where the Bank implements a block in advance of the amount falling due.
If you do not keep up your settlement / payments on time then: 1- You may lose your car, being mortgaged against your liability 2- Your account will go into arrears which may affect your credit rating and may limit your ability to access / obtain financing in the future
This product has been approved by the Sharjah Islamic Bank’s Internal Sharia Supervision Committee
Promotional Communication: I agree to receive promotional communication for product marketing: Calls: Yes ( ) No ( ) SMS: Yes ( ) No ( ) Email: Yes ( ) No ( )
How to File a complaint: - Any branch - If assigned to your bank account, your dedicated relationship manager - Phone Banking: +97165999999 - SIB Website - Internet and Mobile Banking - By Post: P.O.Box 4 Sharjah UAE
Acknowledgement:
I acknowledge that: · I have read and understood the above information for the Vehicle Murabaha Product including the product details, Product features, payment terms, and required documents. · The correctness of the information and the documents, enclosed with the application form and the affordability assessment form, and I agree that it becomes a part of the Bank records, and shall not be returned in case of rejecting the application.
By signing this document, I/We acknowledge that I/We have read, understood, received a copy of the key facts of this product and agree to all of the above terms and conditions outlined which have been explained to me/us and I agree to abide by the terms and conditions as set out in the application of the product.

Name:
Account No:
Signature:
Date:

Name:
Account No:
Signature:
Date:

Key Facts

Key Facts - Car Finance ( Download)

Open

SIB Digital Account