Want to renovate your home or finally consolidate those annoying debts? A personal loan is the key to financial freedom! And with Emirates Islamic Bank personal loan you get competitive rates and flexible repayment terms all while adhering to Islamic finance.
In this post we will break it down for you everything you need to know about Emirates Islamic Bank personal loans. From eligibility criteria and Sharia compliant financing to application process and smart borrowing tips, we got you covered.
Emirates Islamic Bank Personal Loans
What is a personal loan and how does it work in Islamic finance? A personal loan is not the same as interest based finance, Emirates Islamic Bank offers personal finance based on the Murabaha principle. This means the bank buys the item you need and sells it to you at a higher price and you pay in finance instalments. This way your financing is Sharia compliant and uses compliant instruments.
Emirates Islamic Bank offers personal finance solutions to suit your needs whether it’s for travel, education, debt consolidation or just managing your finances. Choose Emirates Islamic Bank:
- Competitive Profit Rates: Get lower profit rates than external credit cards.
- Flexible Repayment: Choose your repayment schedule to suit your budget with comfortable finance tenures and flexible payments.
- High Finance Amounts: Get big finance, up to AED 4 million for UAE Nationals and AED 2 million for expatriates.
- Quick and Easy Application: Apply online or visit an Islamic branch for a hassle free application.
- Sharia compliant: Your financing is Sharia compliant.
Here are the complete Emirate Islamic personal loan details:
| Field | Details (Expats) | Details (UAE Nationals) |
|---|---|---|
| Bank Name | Emirates Islamic Bank | Emirates Islamic Bank |
| Plan Name | Personal Finance for Expats | Personal Finance for UAE Nationals |
| Minimum Salary (AED) | 10,000 AED | 10,000 AED |
| Fixed Rate | 2.85% | 2.59% |
| Key Features | Islamic Finance, Salary Transfer, Flexible Repayment, Low Profit Rate, Simple Documentation | Islamic Finance, Salary Transfer, Flexible Repayment, High Finance Amount |
Emirates Islamic Bank Personal Loan Eligibility
Before you apply make sure you meet the Emirates Islamic Bank personal loan eligibility criteria.
Here’s a quick summary:
- Minimum Salary: AED 10,000 per month for both UAE Nationals and expatriates.
- Age: 21 years old minimum and 65 years old maximum for UAE Nationals and 60 years old maximum for expatriates at the time of maturity.
- Employment: You must have a stable employment history with a minimum service period.
- Documents: Be prepared to submit your Emirates ID, passport and visa for expats, salary certificate and bank statements.
Emirates Islamic Bank Personal Loan Profit Rates and Charges
Understanding the Emirates Islamic Bank personal loan interest rate and charges is important when choosing a personal finance product. Emirates Islamic Bank offers flat profit rate and reducing profit rate.
- Flat Profit Rate: A fixed percentage applied on the original loan amount throughout the finance tenor.
- Reducing Profit Rate: Calculated on the outstanding finance principal amount which decreases with each monthly payment. This usually results in lower overall cost than flat rate.
Here’s a the complete details about profit rates:
| Nationality | Flat Rate | Reducing Rate |
|---|---|---|
| UAE Nationals | Flat profit rate: 2.59% | Reducing profit rate: 4.74% |
| Expats | Flat profit rate: 2.85% | Reducing profit rate: 5.22% |
Besides profit rates, you will also find other fees:
- Processing Fee: One time fee for processing your application. Emirates Islamic Bank has minimal processing fees.
- Early Settlement Fee: If you opt for finance settlement or part finance settlement before the agreed tenure, you will be charged a fee.
- Takaful Fee: This is the cost of insurance for your loan. You can choose from Noor Takaful or Takaful – Ascana Insurance.
- Late Payment Fee: Fee will be charged if you miss a monthly payment or fail to make a payment by the cut off time.
Always Check and Compare the Interest and Profit Rates To get the Better Personal Loan Deal. Bank Like Dubai Islamic Also Offers Good Rates.
Checkout: Personal Loan Salary 3000 | Instant Cash Loan in 1 Hour |
How to Apply for Emirates Islamic Bank Personal Loan?
Applying for Emirates Islamic personal loan is easy. You can apply online or visit your nearest branch.
Online Application
- Step 1: Visit Emirates Islamic Bank website.
- Step 2: Go to Personal Finance
- Step 3: Choose the Emirates Islamic Personal Finance that suits you.
- Step 4: Fill up the online application form with your personal and financial details.
- Step 5: Upload the required documents including months bank statements.
- Step 6: Submit and wait for approval.
Branch Application:
- Step 1: Visit your nearest Emirates Islamic Bank branch.
- Step 2: Meet with a Customer Service Representative and tell them you want a personal loan.
- Step 3: Fill up the bank application form and submit the required documents.
- Step 4: The bank will get back to you with their decision.
Tips to Apply Smoothly
- Make sure all your documents are updated and ready.
- Use Emirates Islamic personal loan calculator to calculate your monthly loan payment and plan your finances.
- Keep your credit bureau score good to increase your loan approval chances.
How to Manage Emirates Islamic Personal Loan?
Once your loan is disbursed, manage it well.
- Repayment Schedule: Know your repayment schedule and choose a payment method that suits you. You can make flexible payments online or through the bank’s mobile app.
- Online Banking: Use Emirates Islamic Bank online banking to make finance payments, check your outstanding loan balance and manage your account.
- Customer Support: If you have any questions or need help, contact Emirates Islamic customer care.
Emirates Islamic Personal Finance Features
Emirates Islamic Bank has the following features:
- Debt Consolidation: Consolidate your existing loans and external credit cards into one Emirates Islamic Personal Finance. This will simplify your finances and may reduce your borrowing cost.
- Liability Letter: If you want to settle outstanding with other banks, you can request liability letter from Emirates Islamic Bank.
- Top-up: You may be eligible for a top up on your existing personal finance if you meet certain conditions such as salary increase or after paying a certain percentage of your finance installments.
- Deferment: In case of financial difficulties you can request a deferment request to postpone a monthly installment payment. However please note that this may incur deferment charges.
- Special Settlement: Emirates Islamic Bank has special settlement options with extended payment terms for specific needs such as property purchase or long term financial planning.
How to Choose the Right Personal Loan For You?
With so many personal finance options out there, you need to choose the one that suits you and your financial situation.
- Know your needs: Determine how much you need and how much you can afford to pay each month. Consider your income and expenses.
- Compare loans: Look into the different types of personal loans offered by Emirates Islamic Bank and compare the profit rate, fees and repayment terms.
- Borrow responsibly: Borrow only what you need and make sure you can manage the monthly loan payment without breaking the bank.
More Benefits of Emirates Islamic Bank Personal Finance
- Takaful Coverage: Get free Takaful coverage with your personal finance and be protected in case of unforeseen events.
- No Over Limit or Extra Charges: Emirates Islamic Bank does not charge any over-limit fees or extra charges on your personal loans as long as you pay on time.
- Low Processing Fees: Enjoy low profit rates and minimal processing fees to keep your upfront costs low.
- Free Takaful: Get free Takaful with Emirates Islamic personal finance.
- First Installment Payment: Expats need to pay the first installment of their Emirates Islamic personal loan within 90 days of getting the loan.
- Holiday Period: Emirates Islamic Bank has a personal loan that comes with a 120 day grace period, so you can relax before you start paying.
Required Documents for Emirates Islamic Personal Loan
- ID and Address Proof: Emirates ID (for UAE nationals), Emirates ID, passport and visa for expatriates, and utility bills as address proof.
- Salary Transfer Letter: Salary transfer letter or salary certificate for salaried.
- Account Opening Forms for Shares Trading: Specific forms for loans for shares trading.
- Liability Letter: Liability letter for debt consolidation or buyout.
- Bank Statement: 3 months bank statements.
- Trade License: Valid UAE trade license for self employed.
Fees and Charges
Emirates Islamic Bank has a comprehensive list of fees and charges for our personal finance products. These fees are inclusive of Value Added Tax (VAT) or any other applicable sales tax.
Some of the fees are:
| Fee Category | Fee Type | Charges (AED) |
|---|---|---|
| Processing Fee | Certificates Murabaha | 0.7875% of finance amount (Min 525, Max 2,625) |
| Shares Murabaha | 1.05% of finance amount (Min 525, Max 2,625) | |
| Takaful (Insurance) Fees | Noor Takaful (Cabin Crew & Pilots) | 0.01194% x Finance Amount x Tenure (months) |
| Noor Takaful (Others) | 0.01618% x Finance Amount x Tenure (months) | |
| ASCANA (Cabin Crew & Pilots) | 0.01474% x Finance Amount x Tenure (months) | |
| ASCANA (Others) | 0.02005% x Finance Amount x Tenure (months) | |
| AMAN (Cabin Crew & Pilots) | 0.01439% x Finance Amount x Tenure (months) | |
| AMAN (Others) | 0.02025% x Finance Amount x Tenure (months) | |
| Other Fees | Deal Cancellation Fee | 105 |
| Balance Liability Certificate | 63 | |
| Clearance Letter (No Liability Certificate) | 63 | |
| DDS/Cheque Return Fee | 0 | |
| Deferment of Installment | 105 per installment | |
| Obligated amount to charity (late payment fee) | 210 | |
| Early Settlement | 1.05% of outstanding balance or max 10,500 | |
| Partial Payment | 1.05% of payment made or max 10,500 |
- Personal Finance – Certificates/Shares Murabaha Processing fee: Varies depending on the type of Murabaha.
- Takaful (Insurance) Fees: Fees for different Takaful providers.
- Deal Cancellation Fee: May apply for cancelling your finance application.
- Balance Liability Certificate: Fee for getting a liability certificate.
- Clearance Letter (No Liability Certificate): Fee for no-liability certificate.
- DDS/Cheque Return Fee: Fee for returned cheques or direct debit instructions.
- Deferment of Installment: Fee for deferring an installment.
- Obligated amount to charity (late payment fee): Amount donated to charity in case of late payment.
- Early Settlement: Percentage of outstanding balance charged for early settlement.
- Partial Payment: Fee may apply for partial finance settlement.
Final Thoughts
Making wise financial decisions can be liberating and with the right information and tools you can navigate the world of personal finance with confidence. An Emirates Islamic Bank personal loan can be a great starting point to achieve your financial goals whether it’s to fund a dream holiday, consolidate debt or manage unexpected expenses.
Emirates Islamic Bank Personal Loan FAQs
How do I calculate my Emirates Islamic Bank personal loan EMI?
Use the Emirates Islamic personal loan calculator to calculate your monthly installments.
What is No Liability Certificate?
No Liability Certificate is a document issued by the bank stating you have no outstanding dues or liabilities with them.
What is Islamic Banking?
Islamic banking is a system of banking that is based on the principles of Sharia and its practical application through Islamic economy.
How do I get the maximum loan amount?
To get the maximum loan amount you should have a good credit history, high monthly income and stable employment history.
