Loading...

Skip to main content

Key Facts

 

Key Facts - Car Finance (Download)

Getting finance for the car customers have always wanted is now easier than ever….

Whether the customers are looking to buy a new or used vehicle, our Car Finance solution is their prompt path to competitive profit rates with flexible settlement terms.

Islamic structure of financing against Vehicle:

Individuals (Salaried or Self Employed) who are interested  in buying a car but do not have money to pay the car dealer or seller in lump sum, Bank helps these customers to buy their dream car by getting the finance and settle the amount in installments on monthly basis.

Murabaha: Car finance transaction is carried out based on the Sharia'a-compliant Murabaha structure, where the bank buys the Car and then sells it to the customer on the basis of deferred payment at an agreed profit rate, in addition to a specific Sharia approved administrative fees that are agreed upon in the contract signed by the customer before carrying out 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 Car will be transferred into customer's name.

Key Finance Features & Benefits:

-     Minimum monthly income of AED 5,000/-

-     Competitive profit rates; as low as 2.49% flat p.a.

-     Finance tenure, as long as up to 5 years

-     Fast processing, with quick approval turnaround time

-     Cater all customer segments (Salaried & Self Employed)

Salaried Applicants:

-     Individuals, employed in UAE with monthly salary being transferred to SIB or any other Bank in UAE

-     Finance Tenure: up to 5 years

-     Minimum Salary:

Employer Segment

UAE Nationals

Expatriates

STL &  Non-STL

STL

Non-STL

Govt.  Semi Govt.  & Private TML Companies (A,B&C)

AED 5,000

AED 5,000

AED 6,000

Non TML *

AED 5,000

AED 6,000

AED 10,000

 

 

Employment Duration:

Employer Segment

Employment Duration:

UAE

GCC & Expats

Govt. & Semi-Govt.

Private TML A, B & C

Upon joining

3 Months

Non-TML (Non SIB Listed Companies)

6 Months

 

Finance Amount:

All Nationalities and customer segments of salaried applicants (STL & Non-STL):

-     (New and Used Car)

-       Minimum: AED 20,000

-       Maximum: AED 1,000,000

Down Payment:

-     UAE Nationals (All Salaried Segments) and GCC & Expats (Salaried – STL, and/or working for TML Company):

-       New and Used Car: 20% Down Payment

-     GCC & Expats (Salaried - Non-STL and/or working for Non-TML Company):

-     New Car:

-       Car Category A: 20% Down Payment

-       Car Category B: 30% Down Payment

-     Used Car:

-       Car Category A: 30% Down Payment

-       Car Category B: 40% Down Payment

Self Employed Applicants:

-          Individuals, Minimum Income From Business in the UAE:

o  Average Net Profit: AED 10,000 per month or

o  40% of the minimum average monthly credit of AED 50,000

Length of Business:

-          SIB Relationship

-     UAE Nationals: One Year in Business

-     GCC & Expatriates: Two Years in Business

-          Non – SIB Relationship - UAE Nationals / GCC & Expatriates: Two Years in Business

 

Finance Amount:

-          All Nationalities - SIB and Non-SIB Relationship:

-          (New and Used Car)

o    Minimum: AED 20,000

o    Maximum: AED 1,000,000

Down Payment:

-          UAE Nationals (SIB and Non-Relationship) and GCC & Expatriates (SIB Relationship Only):

o    New and Used Car: 20% Down Payment

-          GCC & Expatriates - Non-SIB Relationship:

a)       New Car:

o  Car Category A: 20% Down Payment

o  Car Category B: 30% Down Payment

b)       Used Car:

o  Car Category A: 30% Down Payment

o  Car Category B: 40% Down Payment

Key Basic Documentation Requirement: Salaried Applicants

-     Application form duly singed by customer

-     Valid UAE National ID and passport showing the residence visa

-     Current dated Salary certificate or Salary Transfer letter

-     Bank statement for 3 months showing 3 salaries

-     New Car - quotation from the dealer or used / old car - evaluation report

Key Basic Documentation Requirement: Self Employed Applicants

-    Application form duly singed by customer

-    Valid UAE National ID and passport showing the residence visa

-    Current dated Salary certificate or Salary Transfer letter

-    Bank statement for 6 months Personal and / OR Business

-    New Car - Quotation from the Dealer OR Used / Old Car - Evaluation Report

-    Trade License

-    Copy of Chamber of Commerce Registration

-    Memorandum & Articles of Association

Current Profit Rates:

Car Finance Rates

Customer Segment

Salary

New Car

Used Car

UAE Nationals

STL & Non-STL

AED 5K - AED 20K

2.75%

3.25%

˃AED 20K

2.49%

2.99%

 

Expats

STL & Non-STL

AED 5K - AED 20K

2.99%

3.49%

˃AED 20K

2.75%

3.25%

 

Self-Employed

All Segments

Not Applicable

3.49%

3.99%

 

 

Fees and Charges:

Ser.

Service

Fees

1

Deal cancellation (after issuance of Local Purchase Order)

AED 100

2

Documentation Fee - Salaried customers

1.00% on the finance amount (min. AED 500, max. AED 2,000)

3

Documentation Fee - Self-employed customers

1.25% on the finance amount (min. AED 600)

4

Cheque return fee (any cheque, deposited at the bank to pay the monthly installment, returned unpaid)

AED 100

5

Installment deferral fee

AED 100

6

Rescheduling of liability

AED 250

7

Late payment fee (undertaking to donate clause)

AED 500

8

Liability letter

AED 60

9

Change of Installment Due Date

AED 200

10

Mortgage and mortgage release

Free

11

Early settlement

1.00% of outstanding

12

Partial payment

1.00% of the partial payment amount

13

No Objection Certificate to Traffic Department

Free

 

Notes:

-     Above mentioned fees and charges do not include the Value Added Tax (VAT)

-     Any application or documentation fees that have been paid to Sharjah Islamic Bank are non-refundable

-     Any Fees and Charges (whether demanded or not) will be collected from any of customer account with the Bank

-     Details of our Fees and Charges are set out on the Schedule of Services and Tariffs which is available on our website: www.sib.ae and we will also inform customers of any charge we make if they request any service

-     We can change the amount of our Fees and Charges and introduce new or different Fees and Charges to reflect the cost of the work or service involved or for any other reason whatsoever. Customer will therefore need to ensure they refer to the latest Schedule of Services and Tariffs. Where we change the amount of our Fees and Charges, we will provide customers with notice as required by law and regulation

-     The customer shall have the right to have a Cooling-Off period, of 5 business days commencing from the time of signing the contract for the relevant finance, hence if the customer opted 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, disposed of/acted on the vehicle in any manner, its right under the cooling off period will cease. The customer may also waive its right in the cooling off period by its written consent.  For more information, please review the relevant form issued along with the finance approval

Calculation and Charging of profit:

-     Profit is payable monthly or as approved by the Bank.

-     Profit is calculated on the basis of a 360 days calendar year and accrues daily, however sale price agreed upon in the contract is not be subject to any change

Monthly Payments:

-     Customer must make the Monthly Payments on the due dates until full amount of the car agreed is paid off (cost + profit).

-     The finance amount, will be calculated as per the below illustrative example:

Example: Finance amount of AED 200,000, Tenure of 5 years, and Profit rate of 2.74% flat p.a., finance details will be as follows: 

·         Documentation Fee          : AED 2,100 (inclusive of VAT)

·         Total Profit amount          : AED 27,795.78

·         Monthly Installment        : AED 3,796.60

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

Finance Termination Amount:

Where the Contract is terminated/early settled during the contract term, the termination amount shall be the aggregate of the following:

a)        Principal outstanding balance amount

b)       Unpaid profit amount as of termination date

c)     Any amount representing the costs of insurance (including any insurance undertaken on behalf of the customer in accordance with the terms of the contract) and taxes incurred by the Bank

d)       Early settlement amount calculated at a percentage of the outstanding balance amount set out in the above Fees and charges section

-     The finance termination/early settlement amount, will be calculated as per the below illustrative example:

Example: Finance outstanding amount of AED 139,533.10 with the settlement date after 14 days:

·         Finance outstanding amount           : AED 139,533.10

·         Accrued Un-paid Profit amount: AED 2,190.07

·         Early Settlement Fee        : AED 1,465.10 (inclusive of VAT)

·         Total Amount to Settle: AED 143,188.27

Note: Above outlined finance details in the example are for illustrative purpose only and may vary based on the settlement request, settlement date, customer type and any other factor the Bank deem suitable for as per Bank’s policy

Warning:  If you do not keep up your settlement/payments on time then:

1-     You may lose your car, being mortgaged against your liability 

2-     Your account will go into arrears which may affect your credit rating and may limit your ability to access/obtain financing in the future

Disclaimers:

-     This document is provided for information and illustration purpose only based on customer request. All finances are granted at sole discretion of SIB Standard Terms & Conditions. SIB reserves the right to amend any of the above outlined key facts without any prior notice

-     The Bank may also at its absolute discretion change any of the terms and conditions at any time by giving you 30 days prior notice. we may give notice of variations by any means available, including but not limited to email and secure e-message service and by publication on our website (www.sib.ae)

-     This product has been approved by the Sharjah Islamic Bank’s Internal Sharia Supervision Committee

 

First Applicant:

Second Applicant:

Name:  ____________________________

Name: ____________________________

Account No: ________________________

Account No: _______________________

Signature: __________________________

Signature: ________________________

Date: ______________________________

Date: _____________________________

 

 

 

These terms and conditions are applied: 

(Download)


-     In addition to these terms, the Personal Banking General Terms and Conditions shall also apply to any Car Finance granted by Sharjah Islamic Bank. In the event of a conflict, the provisions in these Car Finance terms and conditions shall prevail.

 

General Terms and Conditions:


-     Any application or processing fees or approval re-validation fee or car evaluation fee that have been paid to Sharjah Islamic Bank are non-refundable


-     Any Fees and Charges (whether demanded or not) will be collected from any of customer account with the Bank


-     Details of our Fees and Charges are set out on the Schedule of Services and Tariffs which is available on our website: (www.sib.ae)  and we will also inform customers of any charge we make if they request any service


-     We  can change the amount of our Fees and Charges and introduce new or different Fees and Charges to reflect the cost of the work or service involved or for any other reason whatsoever. Customer will therefore need to ensure they refer to the latest Schedule of Services and Tariffs. Where we change the amount of our Fees and Charges, we will provide customers with notice as required by law and regulation


-     The Finance to Value (FTV), profit rate, fees and other finance terms will vary depending on individual and or applicant’s profile and subject to Bank approval


-     The applicant is responsible for providing the bank with accurate and legitimate documentations


-     The Bank further has the right to cancel the offer at any time during its validity period without any prior notice 


-     Down payment is to be made prior to disbursal of any funds by the Bank


-     Down payment on the car is to be made from the applicant’s own fund


-     If the Finance is granted to more than one applicant (joint financing), the applicants hereby agree and undertake to be jointly liable 


-     Sharjah Islamic Bank fees and charges are inclusive of the Value Added Tax (VAT)


-     In line with the UAE’s Value Added Tax (VAT) implementation from 1st January 2018, VAT at the rate of 5% will be levied on SIB’s fees and charges specified herein, wherever applicable and as per UAE law


 

Securities:


-     Duly registered Mortgage over the car for the full amount of the Murabaha to be executed by the customer in favor of the Bank and to be formally registered with the concerned government department 

-     Fully insure the car with an insurance company throughout the duration of the finance period until payment of the last installment; provided that the Bank shall be the first beneficiary in the insurance policy

-     Any other tangible or intangible securities requested by the Bank from time to time to secure the Finance 

-     Customer to provide security cheque from repayment account prior to disbursal where the total amount of which shall be for the 120% of the Principal Amount. On settlement and closure of the subject finance, the security cheque will be cancelled and destroyed by the Bank

-     The customer hereby acknowledges and agrees that the Securities provided pursuant to the Agreement shall be a security for the repayment of the Finance, profit, Fees, commission and charges owed by the customer to the Bank pursuant to the Agreement, as well as a security for the repayment of any and all amounts owed by the customer to the Bank at any time pursuant to any facilities and/or finances granted by the Bank to the customer at any time after the execution of Agreement

 

Life Takaful:


-     The customer agrees that the Bank may obtain, but not obliged to do so, a life Takaful policy and disability Takaful policy. The proceeds of such policy shall be used only to settle the remaining finance 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


-     After conclusion of the deal, 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, without any prior permission or notice


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

 

 


 

Notices and Correspondence:


-     All notices and correspondence  whatsoever their subject  shall be exchanged between the parties in writing at the addresses provided by the customer or through SMS or email at the customer’s registered mobile number or email address, available in Bank’s record or any other notification medium Bank may deem  appropriate. Customer shall notify to the Bank of any change of its address, contact number or email address and the Bank shall act accordingly immediately after being notified thereof.


-     We may at our absolute discretion vary any of the terms and conditions of the Agreement at any time by giving you 30 days prior notice. We may give notice of variation of the Agreement by any means available,   including but not limited to email and secure emessage service and by publication on our website (www.sib.ae)

 

-     Continued use by you of any product offered to you under the Agreement after the date upon which any amendment to these Car Finance Terms and Conditions comes into effect (as specified by us) will constitute acceptance without reservation by you of such amendment


 

Customer information:


-     Customer agrees that we may disclose their information to any third party in order to verify the information that they have provided to us, including contacting their employer to verify their employment status and any other information in connection with their employment


-     Customer agrees that we can share information with credit reference agencies/bureaus and use information available from public sources to verify their identity and suitability for a finance


-     Customer agrees that when they apply for a Finance facility (or any other credit facility with us) then as part of the application and during the term of the Finance, we may, on an ongoing basis, request reports from credit reference agencies/bureaus to assess their ability to meet financial commitments without further consent from them


-     Customer understands that to request multiple reports from credit reference agencies/bureaus may negatively impact their credit score which may make it difficult for them to obtain credit in the future


-     Customer understands and agrees that we may disclose their information to the respective Emirate’s Vehicle Registration Department or any other relevant authorities, in relation to the Finance and the Agreement for any purpose we believe is necessary and customer agree that any information shared will be publicly available as a result. This may include disclosure relating to registration of the car or Security, or enforcement of the Security


-     Customer understands and agrees to provide it’s express consent to Bank whereby, Bank, in future, may send messages or material, related to Bank’s product/service promotions, marketing material or any other notice on the change in the product/service related changes without obtaining any prior written confirmation from customer. Bank may use any means available, including but not limited to email and secure emessage service, Telephone or post in this regards


 By signing this document, I/We acknowledge that I/We have read, understand, and agree to all of the above mentioned terms and conditions which have been explained to me/us

 

First Applicant:Second Applicant:

Name:  ____________________________

Name: ____________________________

Account No: ________________________

Account No: _______________________
  

Signature: __________________________

Signature: ________________________
  
Date: ______________________________Date: _____________________________
  

 

 

 

 

 

Install

We use cookies to personalize content and ads, to provide social media features and to analyze our traffic. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that you’ve provided to them or that they’ve collected from your use of their services. You consent to our cookies if you continue to use our website.

Rotate For an optimal experience, please
rotate your device to portrait mode.