Personal Finance designed to meet all our customers need to get the instant launch of their dreams and secure their future, as we are here to support them in all this by providing the below mentioned various solutions of Personal Finance that will suit all their life needs noting that these solutions has been approved by the Bank Internal Sharia Supervision Committee.

Murabaha: 

Murabaha transactions, where the bank buys the Commodities and sells them to the customer (Principal amount + agreed profit + study and documentation fee), and it can be executed to fulfil multiple purposes like (new Finance, Additional Finance, takeover liability from other bank) and the underlying Murabaha asset has to be Sharia Compliant like (National Bonds, Shares, DMCC commodity)

Service Ijarah

Lease a service from a Service provider and sublease it to the customer on the basis of deferred payment in addition to a credit due diligence fees as agreed in the contract signed by the customer during executions of the transaction. This product is available for customer who wants to finance specific service from a local service provider (Umrah, Education, Medical treatment, Travel and House/Flat rent)

• Debt Service Ratio: The percentage of Total monthly obligations towards financial facilities to the total monthly income.

• Grace Period for 1st installment: up to 150 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 tenor but not the number of installments.

• Note: the profit rate is applicable during the grace period.

• How to apply:

This Personal Finance is available through:

1. Branches

2. Direct Sales Team

• Mandatory documents:

1. Passport Copy 

2. Emirates ID

3. Latest Salary certificate/income documents

4. Personal Finance Application form

5. UAE FTS form for the non-SIB customers

6. Liability letter for Take over cases

7. Salary transfer letter

• As part of availing this product, the customer will be entitled to the following services and features:

• Postponement

• Liability Certificate

• Early Settlement/Partial Settlement

• Add/Modify/Delete Guarantor

• Due Date change

Terms & Conditions:

1. Personal finance transaction is carried out in compliance with Islamic Sharia rules and principles, through the implementation of Murabahah/Service Ijarah transactions, where the bank buys the Bonds/Commodities and sells them to the customer (Principal amount + agreed profit + Credit Due Diligence and Documentation Fees), or lease a service from a Service provider and sublease it to the customer on the basis of deferred payment in addition to a specific Credit Due Diligence and Documentation Fees as agreed in the contract signed by the customer during executions of the transaction.  This contract also includes other terms and conditions related to the payment of the finance, after which the transaction is executed on the system and the Bonds/Commodity will be transferred into customer's name. The customer shall have right to keep these Bonds/Commodity or liquidate them, whilst customer shall have to utilize the leased services in case of Service Ijarah.

2. The profit rates, fees and charges are those that apply as on 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 bank receives complete documentation. In case the finance is being taken over from other institution, the processing time may extend depending on receipt of all documentation from other institution

3. The Bank at any time deemed necessary and without prior notice, 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, 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 hold in advance on the amount falling due. Customer waives any right that accrues to it at law against the Bank, its shareholders, directors, employees, officers, and representatives regarding any damages suffered, directly or indirectly, as a result of such hold.

4. 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

5. If finance application is approved, it will be also in accordance with the UAE Central Bank regulations, as per the below mentioned details:  

6. Finance tenure will be up to 48 months (60 months for customers working for MOD) at most.

7. A transaction fee will be charged as stated later in this document

8. The Bank has the right to cancel or amend the finance approval before executing the finance transaction with a prior notice to the customer

9. Once the customer enter 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 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 your right to the Cooling-Off Period

Warning:

If the customer chooses to waive its 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, customer will be subject to the risks of price fluctuation of the Product/service sold/leased to him starting from the finance contract signing date.

10. Once finance contract is signed, customer must abide by the terms, conditions and the fees of the finance 

11. Product  Terms & Conditions are to be considered after executing the finance:

12. If the requested transaction is Additional Personal Finance, it will be a separate independent transaction from any previous existing transaction, with new conditions based on the bank’s approval for such Additional Finance. 

13. 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

14. The Bank has the right to contact the customers by our Collections Department and remind them of the total dues to avoid further delinquency or affecting the history in AECB (Al Etihad Credit Bureau).

15. 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 eligibility  to another finance in the future from the bank or other banks 

16. The bank has the right to refer the accounts of delinquent customers to any of its authorized collection agents, to follow up on the collection of the amounts due, whether from within or outside the country, including visits to workplaces to check if the customer is still working for the same employer .

17. In case of a installment payment 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 the delayed installments with a maximum 210 AED on monthly basis until the past due installment amounts are paid. which will be donated to Charity, the bank has the right to use the collected amount against the actual cost incurred to follow up and collect those past dues after obtaining the ISSC approval on the same.

18. 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, and the bank has the right to use collection measures Involving collateral, collection fees and claim on guarantees.

19. 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

20. The Bank has the right to change or amend the terms and conditions related to this products in the future, and customers will be notified 60 days prior the any future change.

21. The bank may refuse to execute any requests, instructions or services requested by the Customer if the Customer fails to comply with the product procedures; or if the information or data are incorrect or are in violation of the law applicable in the United Arab Emirates

Key disclosures:

1. This Key Facts Statement is not an offer of finance facility. The Bank is not obliged to provide the customer with the Personal 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 it can determine whether the customer is eligible for this finance.

2. Key Facts Statement contains information about Personal finance product to help the customer compare and select the most appropriate Personal finance for the customer.

3. 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.

Fees and charges details:

1. Credit Due Diligence and Documentation Fees of 1% (Minimum AED 500 and AED 2,500 maximum) of finance amount will be charged. Refer to : https://www.sib.ae/docs/default-source/default-document-library/services-and-charges-nov-2023.pdf?sfvrsn=891ff14c_3

2. Murabaha Profit rate is the rate that is used to calculate the annual profit amount by reducing balance method. The Total profit amount computation formula is included in the Murabaha Sale Contract.

3. Indicative annualized Profit rates start from 5.29% on  reducing balance (2.89% fixed) Up To 10.98% reducing (6% fixed) and the percentage is determined based on customer profile The finance amount, will be calculated as per the methodology:(Original Cost – Advance Payment) x Annual Murabaha Flat Profit Rate x Tenor in years

Example (Murabaha & Service Ijara): If Finance amount of AED 100,000, Tenure of 48 months, and Profit Flat rate is 2.89% (5.33% reducing), liability details will be as follows: 

• Profit amount          : AED 11,560

• Total amount          : AED 111,560

• Monthly Installment : AED 2,324 

• Credit Due Diligence and Documentation Fees  : AED 1,000

• Takaful Fee (Monthly on a reducing balance): AED 17.6

4. If customer wishes to make an early settlement, the bank may offer a rebate of the future profit, customer will be required to pay an additional amount as an early settlement fee of 1% on the total remaining principal amount of the finance, up to a maximum of AED 10,000, 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

as illustrated in below example:

Example: If the total outstanding of the Finance Liability is AED 100,200 (AED 90,000 principal amount + AED 10,000 deferred profits + AED 200 accrued profits till settlement date), the customer will be required to pay AED 91,100 to settle the finance, and that amount consist of the following amounts, given that the amount of Deferred profits (AED 10,000) will be dropped as per bank discretion 

• The outstanding principal amount (AED 90,000)

• Early settlement amount of 1% of the outstanding principal amount (AED 900)

• The amount of accrued profits (AED 200) till the   settlement date.

Note: Above outlined details in the above examples are for illustrative purpose only and may vary based on customer type, segment, finance type, installment dates and any other factor the Bank deem suitable for as per Bank’s policy

5. Value added tax (VAT) of 5% flat will be charged separately on the applicable Fee/charges

6. 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.

7. Life Takaful Fee:

a) A Life Takaful fee will be charged on the total liability amount (principle + profit) in order to cover the outstanding amount in cases of death or permanent total disability, God forbid  https://www.sib.ae/tariff

b) The proceeds of such policy shall be used only to settle the finance outstanding amount, if any, in addition to the profit and any other amounts due shall be paid by the customer or his/her heir(s), as the case may be

c) All takaful policy premiums shall be paid by the Bank on behalf of the Customer to the appointed insurance company and the same shall be debited to customer’s any account with the Bank when it’s due, 

d) Comprehensive “Life Takaful” terms are available on SIB website (www.SIB.ae) which outlines details pertaining to Life takaful Scope Cover, sum insured and other Life takaful policy conditions