Key Fact Statement (KFS) – Ijarah (the “Product”)

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This Product is a Shariah compliant facility to fulfil your term financing needs. This KFS provides you the key features and indicative information about fees and charges of this Product. The Bank’s Facility Offer Letter, the Islamic Facility Agreement and all other related documents executed by you contain the final terms of this Product.

Product Information
Product Description
This Product is offered to you for financing properties, equipment and machineries, etc.
Islamic Product Structure
This Product is based on the Shariah concept, Ijarah, whereby the Bank purchases the asset from the customer or a third party and leases it back to the customer under a deferred payment plan.
Finance Currency
AED (Arab Emirates Dirham)
Maximum Finance Tenor
As agreed – more than 12 months
Profit Rate Type
Variable Rate - ✓ Fixed rate - ✓ Variable & Fixed Rate - ✓
Profit Rate Method
Reducing Balance Method where the Profit amount is accrued on a daily basis on the outstanding Finance payable as per agreed repayment plan.
Payments Required
Equated or non-equated installments based on an agreed payment plan with the customer consisting of Profit/Variable Rent and Principle/ Fixed Rent. Repayment can be monthly, quarterly, semi-annually, or annually. This is as per the agreement with the customer.
Variable Profit Rate Structure and Calculation
EIBOR (1,3,6,12 month) + Margin = Effective Rate The Variable Rental = (Effective Rate p.a. * the outstanding Fixed Rental * the number of days in the rental period)/360 Example for an Outstanding Finance amount of 1,000/-, Effective Profit rate 5% pa and payable quarterly (90 days quarter) Murabaha Profit = 1,000 x 5/100 x 90/360 =12.50
Variable Profit Rate Benchmark
Emirates Interbank Offered Rate (EIBOR) and (LIBOR) London Interbank Offered Rate The Benchmark for the rental period is fixed on the first day or start of the rental period
Annual Percentage Rate (APR) (indicative)
- APR includes the applicable profit rate and processing fees expressed as an annualized rate - Benchmark Rate (1\3\6\12 months EIBOR) + Margin as agreed

Fees & Charges
Processing Fees
As per the Facility Offer Letter
Late Payment Fee (obligated amount to charity)
As per the Facility Offer Letter
Partial & Early Settlement
As agreed in the Facility Offer Letters
Third-Party
Government Fees - As per the fee tariff of government authorities of respective Emirate of UAE for Registration, Mortgage in RERA or for RTA/ADP for Vehicles

All charges, commissions 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 on behalf of the customer to a charity approved by the Bank’s Internal Shariah Supervision Committee, after deducting the actual expenses incurred due to customer’s delay or default in making the due payment(s).

Additional Information
The Bank, without referring to the customer, may debit the customer’s accounts with any charges, expenses, or commission payable against the banking services rendered in accordance with the approved and announced banking charges and commissions.
The Bank may from time to time, and at its sole discretion make changes to the Terms and Conditions pertained to this Product. Without prejudice to the [on-demand/uncommitted] nature of this product, where required by applicable law such changes will be communicated to you with a 60-day prior notice and/or as mutually agreed in the Offer Letter signed by you.
The Finance Amount you are eligible to and the profit rate offered may differ from the sample illustration as shown above. This will depend on your credit profile and affordability assessment done by the Bank.
This Product/ the Facility is subject to your mortgaging of the property 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.
If the asset which is financed comes under partial or any damage as a result of misconduct or negligence, you are obliged to bear the actual costs of restore/ repair.
The Terms and Conditions (including any relevant applications and documents) shall be read and implemented in line with this KFS.
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/en/contact-us)

Warning
Rate applicable to each Lease Period may vary depending on movements in the Benchmark Rate (EIBOR)/ (LIBOR/SOFR).
Restructuring your Finance Facility may take longer to pay off than your previous Finance Facility and may result in paying more profit.
The customer may have to pay penalties which consider percentage of the outstanding principal amount for early settlement charges if he pays off his/her finance early
If you do not meet the payments of your finance, on time and in full, your bank account will go into arrears. This may affect your credit rating and may limit your ability to access financing in future.
If you do not meet the payments of your finance, you may lose your asset.
In case the customer fails to fulfil his/her obligations as per the Terms and Conditions pertained to this Product, before and during his/her relationship with the Bank, there will be consequences including but not limited to the exercise of the Bank’s rights against the customer and any security/guarantee together with the payment of penalties as per the related contract
You are requested to provide the Bank with copies of your updated documents at all times (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/)

Key Fact Statement (KFS) – Ijarah (the “Product”)

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