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Own the vehicle of your dreams. This KFS provides you with key product features and indicative information about major terms & conditions, applicable fees and charges. Kindly refer to the Offer Letter for the final terms of your finance facility
| Product Information | |||
|---|---|---|---|
| Product Description | |||
| Auto finance is a finance facility, based on salary / regular income, extended for the purpose of purchasing a vehicle. | |||
| Islamic Product Structure | |||
| This product is based on the Shariah concept, Murabaha - a buying and selling transaction between the Bank and the customer, whereby the former buys a vehicle at the prevailing market price and sells it to the customer at a profit. Payment is made on deferred basis through installments over a time period, as agreed upon by both parties. For more details please visit: https://www.emiratesislamic.ae/en/general/shariah-certificates | |||
| Product Features | |||
|---|---|---|---|
| Finance Currency | |||
| AED (Arab Emirates Dirham) | |||
| Maximum Finance Tenor | |||
| 5 years / 60 months | |||
| Minimum down payment/Hamish Jiddiyya | |||
| 20% of the vehicle value | |||
| Profit Rate Type | |||
| Fixed Rate p.a. (fixed for the period of finance and the monthly profit is calculated based on the effective rate on reducing principal finance amount). | |||
| Total Murabaha Profit | |||
| Murabaha profit = Finance amount x fixed profit rate per annum x Tenor in years *. *The tenor includes grace period, if any, and is calculated as follows: (Tenor in Months / 12) + (grace period in days/365) |
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| Profit Rate (indicative) | |||
| Flat rate ranging from 2.49% to 5.64% p.a. (Equivalent reducing rate ranging from 4.72% to 10.24% p.a.) | |||
| Annual Percentage Rate (APR) (indicative) | |||
| APR includes applicable profit rate and processing fees expressed as an annualized rate. | |||
| Flat rate ranging from 2.70% to 5.85% p.a. (Equivalent reducing rate ranging from 5.15% to 10.70% p.a.). | |||
| Profit Rate Methodology for payment Schedule | |||
| Monthly Equated Monthly Installment (EMI) profit is calculated on the effective rate methodology on reducing principal basis. | |||
| *Fees & Charges | |||
|---|---|---|---|
| Processing Fees | |||
| 1.05% of the vehicle finance amount including VAT (Min AED 525 and Max AED 2,625 per vehicle financed). This is a one-time non-refundable fee (in relation to due diligence, documentation and processing) and will not be reimbursed in case you decide to withdraw your application. | |||
| Obligated amount to charity (late payment fee) | |||
| AED 210 (Inclusive of VAT) is billed only when we do not receive monthly payment from you, in full on its due date | |||
| Partial & Early Settlement | |||
| Fees applicable to partial or early settlement of balance principal amount charged at 1.05% of principal outstanding / partial settlement amount | |||
* All charges and fees are inclusive of Value Added Tax (VAT) and/ or other similar sales tax. To review the most updated schedule of charges please visit our website.
• The Bank shall pay any such amounts for and on behalf of the customer to a charity approved by the bank's Internal Shariah Supervision Committee, after deducting the actual costs and expenses incurred due to customer's delay or default in making the due payment(s) limited to collection and litigation expenses.
• For non-individuals including sole proprietors Minimum Down payment, Max tenor and processing fees may vary.
| Key Requirements | |||
|---|---|---|---|
| The applicant should be above 21 years. The applicant should be residing in UAE and meet the income criteria of the bank. The applicant should meet the affordability assessment criteria. Note: Bank has a right to decline any application at its own discretion. |
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| Sample Illustration (for reference purpose only) | |||
|---|---|---|---|
| Vehicle Value | |||
| AED 100,000 | |||
| Down Payment/Hamish Jiddiyya | |||
| AED 20,000 (20% of the total Vehicle value) | |||
| Finance Amount | |||
| AED 80,000 | |||
| Flat Rate | |||
| 2.134% pa. | |||
| Effective rate | |||
| 4.06% pa. (indicative) | |||
| Annual Percentage Rate (APR) (indicative) | |||
| 4.49% APR based on fixed profit rate of 4.06% reducing per annum (equivalent flat rate of 2.134% per annum) and processing fee of 1.05% | |||
| Finance Tenor | |||
| 60 months (5 years) | |||
| Total Murabaha Sale Price | |||
| AED 88,536 = Finance amount (80,000) + Total Profit Amount (8,536) | |||
| Total Profit Amount | |||
| AED 8,536 = Finance amount (80,000) x equivalent flat rate (2.134%) x Tenure in years (5) | |||
| EMI (indicative) | |||
| AED 1,476 = Total payment Amount (88,536)/ Tenor in months (60) | |||
| Early Settlement Example | |||
| Outstanding principal amount AED 20,000 Early Settlement Fee 1.05% AED 210 |
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| Additional Information | |||
|---|---|---|---|
| The Bank may debit your accounts with any actual costs and expenses payable against the banking services rendered in accordance with the approved and announced banking charges, as notified to you from time to time. | |||
| Bank may from time to time, and at its sole discretion, change or amend the Bank’s General Terms and Conditions for Consumer Banking Services (including any relevant applications and documents and other Special Features) by notice to you in accordance with applicable law. | |||
| In case of any incorrect, incomplete or mismatch of information on application form with the information provided on the certified copies of the original official documents, the information on the certified copies of the original official documents will be taken up and acted upon by the Bank, without any reference to the customer, as true and accurate, and will supersede the information on the application for the purpose of obtaining Auto Finance and updating the Bank’s official records. | |||
| The finance amount you are eligible for and the profit rate offered may differ from the sample illustration as shown above. This will depend on your credit profile, special terms offered (like subventions) and affordability assessment done by the Bank. | |||
| The Bank shall disburse the funds approved within 10 business working days, after completion and fulfilment of all conditions and requirements by you. In the event of any delay in disbursement of the funds, you will be notified accordingly. | |||
| The facility is subject to your pledging the vehicle as collateral in favor of the Bank, Additionally, the Bank reserves the right to request for security/ conditions (including but are not limited) to security cheques, guarantor, co-signer, salary transfer, etc. | |||
| In case of a First Payment Date grace period, or a deferment of Instalment/ EMI, the profit accrued during the deferred period will be apportioned towards remaining Finance tenor/ Lease Term. Also, each deferred Installment / EMI will reflect as an increase in the total Finance Tenor/ Lease Term with additional months of payment | |||
| The cooling-off period allows you to cancel the product within five (5) business days of signing the application or offer letter and the Bank will not be able to proceed until this period expires, unless you waive this right. To cancel within this period, you must give the Bank notice. | |||
| If you prepay the finance you will have to pay all profit for the finance period which shall not exceed the total profit agreed, subject to any rebate granted by the Bank. There may also be early settlement fees. | |||
| You can contact the Bank for any enquiries, assistance or complaints at any of its branches or by visiting its website https://www.emiratesislamic.ae/ | |||
| Warning | |||
|---|---|---|---|
| You may have to pay penalties if you pay off a finance early. | |||
| If you do not meet the payments on your finance, on time and in full, your account will go into arrears. This may affect your credit rating, which may limit to access finance/ financing in the future. | |||
| The Bank is not responsible for any damage/ loss of your vehicle, after the execution of the Murabaha Contract. | |||
| When you avail instalment deferments, it may take longer to pay off your finance and cost you more. | |||
| If you do not meet the payments on your finance, you may lose your vehicle. | |||
| In case you fail to fulfil your obligations as per the product Terms and Conditions, before and during your relationship with us, there will be consequences including, but not limited to penalties. | |||
| You are required to always provide the Bank with copies of your updated documents (Emirates ID, Passport, Visa, Trade License, etc.). Not providing these documents might result in the charges, transactions being restricted, account being blocked, or account being closed. | |||
| Important link | |||
| For Key Fact Statement and other important information visit (https://www.emiratesislamic.ae/en/key-information/) | |||
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