KEY FACTS: SMILES VISA COVERED CARD ( Download)

Type of Smiles Covered Card Requested:

Smiles Visa Covered Card-Key facts

 Thank you for applying for Sharjah Islamic Bank Smiles Covered Card. To ensure transparency regarding the Bank offer, we request you to please go through the given below and sign your acceptance. Should you require any further information, please contact our 24-hours Call Centre team on 065999999 or visit our website www.sib.ae

Type of Covered Card Requested:

Smiles Platinum Covered Card


Cards Offerings & Schedule of Charges:

Card offerings

Platinum “Smiles” Card benefits:
• Free for life
• For Every AED 2 spent, you will get 1 Smiles on Domestic and 2 Smiles on International spends
• Get 0.5 Smiles on transactions under (education, government services, utilities, supermarket) Categories
• Instant cash
• Global Emergency Assistance

Schedule of Charges

*Charges are VAT inclusive

Key Facts on using Covered Cards

(Important to be read carefully and with understanding)

1. It is advisable to always make monthly payments more than the minimum due according to the last statement issued by the Bank in order to replenish your Wakala account (available balance to use) rather than making minimum payment that mainly covers the fees and charges of the Card and only small portion remains as an available balance to use.

2. In case you choose to make only the minimum payment by the due date, then the Bank will keep calculating the Profit (net between the Murabaha and Wakala Profits) on daily basis till the full Wakala outstanding (Card available balance) is covered. This includes new transactions made after the statement issuance.

3. Please ensure that you round up the total dues requested by the bank and pay the exact amount before or on the due date to avoid paying the profit net between the Murabaha and Wakala Profits that is calculated on daily basis until the payment date. To clear any doubt, below example provides illustration on this payment scenario.

• If the cover is AED 10,000 and you used the AED 10,000
(out of which AED 3,000 is cash withdrawal):
a If you pay  AED 10,000, you will pay to the bank profit for AED 3,000
b If you pay less than AED 10,000, you will pay profit for the full AED 10,000 

• If the cover is AED 10,000 and you  used AED 8,000 as retail purchases:
a If you pay AED 8,000, you will not pay profit.
b If you pay the minimum up to 7,999, (or fails to pay any amount), you will pay to the Bank profit for AED 8,000 = {AED 10,000 -AED 2,000}.
c If you fail to pay any amount, you will pay to the Bank profit for
AED 8,000 and commitment to donate charges shall apply.

4. If you will pay the total outstanding on or before the due date, SIB will credit the difference between the Murabaha profit and the Wakala profit as bonus, and in this case no profit to be paid by you to the bank.


Warning! Please be aware that continuous failure to make the regular payments on time will expose you to further charges ( commitment to donate) and may lead to further legal action by the bank.


5. Customer can request a facility of Easy Payment Plan (EPP), Balance Transfer (BT), Easy Cash (EC) and Bank may process the request based on customer eligibility and Bank polices. To view the instalment products terms and conditions, visit: www.sib.ae/instlalment-TCs

6. Key Facts Statement contains information about Covered Card product to help the customer compare and select the most appropriate card type for the customer

7. This Key Facts Statement is not an offer of finance facility. The Bank is not obliged to provide the customer with the Covered Card described in this Key Facts Statement. The customer will need to apply for the Covered Card and meet the Bank’s credit suitability criteria before we can determine whether you are eligible for this finance.

8. 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.

9. If the customer does not meet the payments on his/her financing, this may affect his/her credit rating, which may limit his/her ability to obtain financing in the future.

I have understood the following information for the selected Smiles Platinum Covered Card:

• Product details – Product features, Cashback offer, payment terms and documentation requirements.

• Smiles Points will be awarded on the card based on the spends made as per the transaction category and awarded on a monthly basis after the issuance of statement.

• The Bank, at its discretion, has the right to change the fees or any offer terms at any time without obtaining customer’s written consent, provided that such a change to be communicated to the customer through means of communication that guarantee customer has been advised. If the Bank does not receive any objection from the customer within 60 days from notification date, this will be considered as customers’ consent. However; in case the customer doesn’t agree to the change made by the bank, the two parties may agree to settle the relevant card liability or shift to another product.

• Once the Covered Card is activated by the customer, the customer shall be liable to make any payments on the card as requested by the Bank via SMS or monthly statements. To avoid any doubts regarding payments date, it is advisable to contact the call center upon card activation to check this information.


Important terms related to Covered Cards

Card Account
means the SIB Wakala investment account opened by the Cardholder with SIB where the Card Limit is deposited and used for entering all credits and debits received or incurred by the Cardholder and/or the Supplementary Cardholder (if any) or any unutilized amount.

Murabaha Contract
means the National Bonds Murabaha Contract between the Bank and the Card Holder under which the Bank had sold to the Card Holder, for the Sale Price, identified and specific number of National Bonds.

Murabaha Profit
means the monthly installment due that is supposed to be paid by the Card Holder over the period of the Murabaha Contract. This installment is equal to:

Murabaha Principal amount (Covered Card limit) * Murabaha Profit Rate * 360 / 12 * number of days in a month.

Collect on Monthly basis, such amount is fixed and shown as debit value in customer statement.

Charged Profit
means the net amount between the Murabaha and Wakala Investment Profit.

Wakala Investment Account
means the Wakala Investment Account opened purposely to represent the Card usage cover. The redemption proceeds of the national bonds purchased under Murabaha will be deposited in the Wakala account where the balance represents a cover for using the covered card.

Wakala Profit
means the profit generated to the customer from its Wakala Investment Account, calculated, on monthly basis, as:

Wakala unutilized balance * Wakala expected Profit Rate * 360 / 12 * no of days in a month. (the amount of this profit is variable based on the unutilized Balance in the Wakala Investment Account and shown as credit value in customer statement.

Bonus
means the rebate given by the Bank as result of paying the full outstanding as requested in the Statement of account issued by the Bank on monthly basis.


Cooling-off Period
The Customer shall have the right to have a Cooling-Off period of 5 complete business days commencing from the time of signing the contract, wherein the customer may opt to terminate the contract within the cooling off period, the Bank has to refund to it any related Fees and direct costs already incurred by the customer. However, if the customer, within the cooling off period, starts using the product, its right in the cooling off period will cease. The customer may also waive its right in the cooling off period by its written consent.

Alternatives to Covered Cards
There are other products offered by the Bank that may suit your needs, however they do not have the benefits of Covered Card

Debit Card:
You can make purchases using your Debit Card that is linked to your current/saving account, however Covered Card usually allows you to make purchases with higher limit than available funds in the current/saving account. You will enjoy a free repayment period of up to 17 days from statement issuance date which is known by the ”Due date”. Also, there is a loyalty program available on Covered Card versus the Debit Card where you can earn the points against your purchases, thereby you can save more.

Personal Finance:
This product is designed for medium or long term facility needs with higher amount than a Covered Card limit. For daily or short term needs, a Covered Card is a more convenient and recommended solution.

Important Information about Bank Procedures:

Delinquency (unsettled dues) on the Covered Card
• The Bank may 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, 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 Card Facilities, even in cases where the Bank implements a block in advance of the amount falling due.

• The Bank has the right to contact you by our Collections Department and remind you of the total dues that you have to cover to avoid further delinquency or affecting your history in AECB (Al Eithad Credit Report).

• In case you are totally unreachable, the Bank shall contact the reference details available in our records in order to reach you.

Covered Card Cancellation
• Before placing cancellation request, you must ensure that the outstanding balance is entirely settled and no further dues to be paid to the Bank.

• Some transactions may appear after placing the cancellation request and making the payment which are not settled or delayed by the merchant or retailer. You will still be liable to make those payments.

• Once the outstanding balance is paid off, please contact our call center to proceed with the cancellation process that may take up to 5 working days.

• In between, you may receive a call from our retention department to understand the reason of cancellation and resolve any issue pertaining to the card. In case you agree to keep the card, then request shall be dropped.

 Your obligations to control fraud and action to be taken in case you suspect any fraud

1. Always keep your card and transactions details safe and never disclose card details (including includes username, passwords, OTP for online transactions) to any third party.

2. Beware of promotions with large prizes or discounts and contact the Bank for reporting or clarifying any doubt.

3. In case you receive any SMS of transaction that you have not made it yourself, please block the card immediately via our online or mobile banking application or contact our call center. Moreover, you would need to fill in a dispute form at our branch to allow us to investigate from our side.

For further details regarding your Covered Card, please check the detailed terms and Conditions available on the website. www.sib.ae

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
• Online and Mobile Banking
• By Post: P.O.Box 4 Sharjah UAE

Application Processing and Approval:

I acknowledge that:

• The correctness of the information and documents, and security cheque  enclosed with the application form and agree that will become part of the banks record and will not be returned in case of rejecting the application
• Sharjah Islamic Bank is entitled, at its sole discretion, to approve or reject
the application of the Cashback Covered Card
• By signing the declaration form, I have read, understood & agreed to abide by the terms and conditions as set out on the application form for Sharjah Islamic Bank Covered Card.


Name of applicant: ....................................................................................................................



Signature of Applicant:
Date:  | DD | MM | YY |





This Product has been approved by Internal Sharia’a committee basis the Islamic Rules of Murabaha and Wakala Concepts, and upon redeeming the proceeds of the Murabaha and depositing the same into the Wakala Investment account the Cashback Covered Card shall be issued.