Personal Finance Terms and Conditions

Personal Finance Terms and Conditions (Download)

Definitions:

“Bank” or “SIB” Means Sharjah Islamic Bank, a Public Joint Stock Company, licensed by the Central Bank of the UAE

“Customer” means an Individual Customer who is willing to avail Bank’s services and Products or holding an account with the Bank

“Personal Finance” Personal Finance is a finance facility designed to support customer’s needs, by providing the below mentioned various solutions of Personal Finance that suits the customer day to day needs , where repayments are made from salary and end of service benefit and/or any other regular income from a well-defined source noting that these solutions has been approved by the Bank Internal Sharia Supervisory Committee,:

· “New Personal Finance” This product, provides liquidity to help the customer who is planning to get married, travel, or furnish his/her home or pay rent costs, or get any of his personal necessities *

· “Additional Personal Finance/Top-up“ This product provides additional liquidity in order to settle customer existing liability with the bank and further procure additional funds to help him meets other financial commitments *

· “Personal Finance for Liability Takeover’ This product provides additional liquidity to settle customer existing liability with other bank in the country*

· “Goods Murabaha” This product is available for customer who wants to avail a finance in order to purchase specific goods from a local supplier

· “Shares Murabaha” This product is available for customer who needs liquidity through buying shares under Murabaha and may liquidate the same after possessing.

· “Service Ijarah” This product is available for customer who wants to finance specific service from a local service provider (Umrah, Education, Medical treatment, Travel and House/Flat rent)

* The transaction will be executed using Bonds/ Commodity Murabaha

The Customer agrees and warrants the following:

1. The Finance amount, profit rate, fees and other finance terms will vary depending on individual and or applicant’s profile and subject to SIB/Bank approval

2. Down payment (In case of Goods Murbaha/Service Ijarah) is to be made prior to disbursal of any funds by SIB and is to be made from the customer’s own fund

3. Based on customer’s request, SIB may issue a provisional/Inprincipal offer to the customer on any finance product, and this offer will not be considered as a final Offer, and will be subject to submitting all the required documents and reports extracted from other official financial institutions (Local & International) , as the Bank has the rights, at its own absolute discretion, to modify the details of the Offer or withdraw it in full

4. Total Murabaha/financing profit amount is calculated for the entire financing period including any grace period that precedes the first installment date.

5. Customer understand that installment date would be set in line with customer’s monthly salary transfer date

6. If the Finance is granted to more than one applicant (joint financing), the applicants hereby agree and undertake to be liable for the Finance outstanding as joint and several applicants

7. The Customer irrevocably confirms and agrees that the finance is being availed by the Customer because he/she is still employed with his/her current employer, during the duration of this finance and, should the Customer change jobs and/or move to a different company and/or are no longer employed and/or salary is stopped or reduced, and SIB has the right to ask for additional documents as per SIB’s required format and settle the outstanding of the finance amount and/or Sale Price from his/her end of service benefits which SIB have and/or to be received from his/her previous employer

8. In case the approved Finance application is related to Bonds Murabaha, and the Bonds related to Murabaha, are transferred into customer’s name:

a. Customer irrevocably authorizes SIB to redeem the same Bonds, and in the event that customer wishes to keep the Bonds in his/her name with the National Bonds Company, then the redemption process is subject to the regulations and policies of the company.”

b. Customer authorizes SIB or any other agent appointed by him/her to transfer the bonds redemption proceeds to customer’s account with SIB or any other account as agreed upon, after deducting any relevant execution expenses.

c. In case customer has liabilities that needs to be settled, customer authorizes the Bank, to hold an amount from the redemption proceeds of the Bonds, purchased from the bank by way of Murabaha, to settle customer’s liabilities with SIB and deposit the remaining amount of the redemption in his/her SIB account, that is in case the purpose of the finance is to settle customer’s liabilities with SIB. But in case the purpose of the application is to settle customer liabilities with another bank/other banks, customer’s authorizes SIB to settle these liabilities by deducting the amount from the redemption/selling proceeds of the Bonds purchased from SIB by way of Murabaha.

In addition, customer authorizes the bank to hold any remaining amount of the redemption/selling proceeds until customer’s salary is transferred to SIB.

In case the approved Finance application is related to Commodity Murabaha, and the Commodity related to this Murabaha, are transferred into customer’s name:

a. Customer irrevocably authorizes the Agent appointed by him/her to sell the same commodity, and the selling proceeds to be transferred to customer’s account with SIB or any other account as agreed upon, after deducting any relevant execution expenses.

b. And, in case customer has liabilities that needs to be settled, customer authorizes SIB, to hold an amount from the selling proceeds of Commodity, purchased from SIB by way of Murabaha, to settle customer’s liabilities with the bank and deposit the remaining amount of the selling proceeds in his/her SIB account, that is in case the purpose of the finance is to settle customer’s liabilities with SIB. But in case the purpose of the application is to settle customer liabilities with another bank/other banks, customer’s authorizes SIB to settle these liabilities by deducting the amount from the selling proceeds of the Commodity purchased from the bank by way of Murabaha. In addition, customer authorizes the bank to hold any remaining amount of selling proceeds until customer’s salary is transferred to SIB

10. And since SIB is settling customer’s liability with other bank(s), customer hereby authorizes unconditionally the Bank’s representative to collect the original clearance Certificate post settlement of his/her liability with other bank(s). and the customer hereby also confirms that he/she is not authorized to apply for a duplicate copy of the same Certificate without the written consent from SIB

a. Once the customer’s liability with the other bank(s) are settled, SIB shall deliver the clearance letter issued by the other bank(s) to the customer employer, or request the customer to deliver the same letter to customer employer, hence , the customer undertake that he/she will deliver the clearance letter to the employer within 3 working days in order to start the process of transfer the customer’s salary and End of service benefits to SIB

b. Customer undertakes to submit to SIB a Salary Transfer Letter, also customer undertakes that he/she will transfer salary to SIB within 75 days from the date of the Murabaha execution and in case the customer fails to transfer his/her salary within this period, the customer authorize SIB to settle customer’s liabilities due to the Bank from any amounts available in his/her account(s) with it, irrespective whether credited before or after signing this application, and that SIB shall have the right to take all legal and judicial procedures against the customer.

General Terms and Conditions:

1. The customer authorizes the Bank to obtain and disclose any financial, legal or credit information relating to the customer (including information the Bank may obtain from any third parties such as any local or international credit bureau), in addition to any information pertaining to the address, telephone to verify, obtain or disclose such information as the Bank may deem fit in its absolute discretion

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

3. The customer understands that the approval of his/her Application is subject to the policies and Terms and Conditions of the Bank and that such approval is at the sole discretion of the Bank.

4. Any application or Administrative fee that have been paid to the Bank are non-refundable once the transaction is booked

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

6. Details of Bank Fees and Charges are set out on the Schedule of Services and Tariffs which is available on Bank website: (www.SIB.ae), customers also will be informed on the fees and charges of the requested

7. The bank can change the amount of 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 therefore need to ensure they refer to the latest Schedule of Services and Tariffs. Where bank changed the amount of Fees and Charges, Bank will notify the customers as required by law and regulation

8. Bank fees and charges are inclusive of the Value Added Tax (VAT) in line with the UAE’s Value Added Tax (VAT) implemented from 1st January 2018, VAT at the rate of 5% will be levied on SIB’s fees and charges, wherever applicable and as per UAE law

9. 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 e-message service, Telephone or post in this regard

10. 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 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 subject of the contract in any manner, 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. For more information, please review the relevant Form issued along with the finance approval

11. Once finance contract is signed, customer must abide by the terms, conditions and the fees of the finance

12. If the requested transaction is Additional Personal Finance, it will be a separate independent transaction from any previous existing transaction, with new conditions based on the bank’s approval for such Additional Finance.

13. Finance installments has to be paid on the due dates, and if customer fail to pay any installments for any reason the remaining installments shall become immediately due and payable without the need for any notice and the bank may claim the remaining installments through the legal procedures

14. If the customer fails to pay any finance installments on the due dates, this may affect customer’s credit rating, which may limit the customer eligibility to another finance in the future from the bank or other banks

15. In case of a delay for more than 7 days from the due date of the installment, Bank may apply the donation clause and charge 1% of the installment amounts on monthly basis until the past due installment amounts are paid. The bank may use such amount to recover the actual cost of the follow-up and collection of that default amounts.

16. If the salary is one of the securities required for the finance, customer needs to transfer the salary to the bank as soon as the required finance transaction is completed, and in the event of termination of the customer’s services by customer’s employer and transfer of End of Service benefits (EOSB) to the account, or in case of resignation or changing employer, the bank is entitled to block the EOSB and any other amounts available in the account in order to pay any overdue amount (s) of the finance and to settle any installments on its due date, or transfer the EOSB/amounts to pay the installments that have not been settled according to their due dates

Life Takaful:

1. 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

2. 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

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

Events of Default:

1. Where any of the Events of Default should occur, thereof, the Bank may, at its sole discretion terminate the finance and declare the outstanding Principal Amount, the profit and any Fees or charges to be immediately due and payable whereupon the outstanding Principal Amount together with accrued profit thereon and all other sums due hereunder shall become so payable without further presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the customer

2. The Customer shall be in default should any of the following events (Event of Default) occur or be continuing:

a. The Customer fails to make any payment towards the Finance or the Profit or any other amount hereunder when due; or

b. Any representation or warranty made or implied by the Customer herein proves to be at any time incorrect or inaccurate or is not complied with in any respect which, in the opinion of the Bank, is material; or

c. The Customer is unable to pay his debts as they fall due, commences negotiations with any one or more of their creditors/debit collector with a view to the general readjustment or rescheduling of his indebtedness or makes a general assignment for the benefit of or a composition with his creditors/debit collector or if he defaults under the terms of any guarantee whose default, in the opinion of the Bank, adversely affects the ability of the Customer to fulfil all or any of his obligations under this Agreement; or

d. An adverse change occurs in the Customer’s legal structure or financial condition, which in the opinion of the Bank, would impair the ability of the Customer to honor his obligations to the Bank and/or to comply with the other terms and conditions of the Agreement or any of the documents referred to herein; or

e. A judgment, payment of money order, or attachment of assets order has been issued by a competent court against the Customer; or

f. The Customer becomes insolvent or bankrupt or has a receiver appointed for the whole or any part of the business assets or undertakings or an order of a competent court is made for the bankruptcy of the Customer; or

g. The Customer merges or amalgamates with any legal entity without obtaining the Bank’s written consent; or

h. The Customer ceases for any reason to carry on his business or job; or

3. The customer hereby acknowledges and agrees that if customer does not keep up repayments/payments on time then:

a. The Bank may proceed to enforce any security given in Bank’s favour, or

b. The Bank may proceed to present any cheques provided for payments. In the event that any cheque presented by the Bank is not honored, this may result in both civil and criminal consequences for the customer

c. Customer account will go into arrears which may affect credit rating and may limit the ability to access/obtain financing in the future

Notices and Correspondence:

1. 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.

2. Bank may at its absolute discretion vary any of the terms and conditions of the Agreement at any time by giving the customer 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 e-message service and by publication on bank website (www.SIB.ae)

3. 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 e-message 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

Applicant:…………………………………………………....……………....…………………....…………….....

Name: …………………………………………………....……………....…………………....…………….....

Signature: ……………………………………………………………....……………....……………....….....

Date: ………………………………………………….....……………....……………....……………....

Personal Finance Key Facts (Download)

Product description:

Personal Finance designed to meet all our customers need to get the instant launch of their dreams and secure their future, as we are here to support them in all this by providing the below mentioned various solutions of Personal Finance that will suit all their life needs noting that these solutions has been approved by the Bank Sharia supervision committee:

New Personal Finance*:
This product, provides liquidity to help the customer who is planning to get married, travel, or furnish your home or pay rent costs, or get any of his personal necessities
Additional Personal Finance/Top-up*:
This product provides additional liquidity in order to settle customer existing liability with the bank and further procure additional funds to help him meets other financial commitments.
Personal Finance for Liability Takeover*:
This product provides additional liquidity to settle customer existing liability with other bank in the country
Goods Murabaha
This product is available for customer who wants to avail a finance in order to purchase specific goods from a local supplier
Shares Murabaha
This product is available for customer who needs liquidity through buying shares under Murabahah and may liquidate the same after possessing.
Service Ijarah
This product is available for customer who wants to finance specific service from a local service provider (Umrah, Education, Medical treatment, Travel and House/Flat rent)
* The transaction will be executed using Bonds/ Commodity Murabaha

Terms & Conditions:

1. Personal finance transaction is carried out in compliance with Islamic Sharia rules and principles, through the implementation of Murabahah/Ijarah transactions, where the bank buys the Bonds/Commodities and sells them to the customer (Principal amount + agreed profit + Administrative fee), or lease a service from a Service provider and sublease it to the customer on the basis of deferred payment in addition to a specific administrative fees as agreed in the contract signed by the customer during executions of 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 Bonds/Commodity will be transferred into customer's name. The customer shall have right to keep these Bonds/Commodity or liquidate them, whilst customer shall have to utilize the leased services in case of Service Ijarah.

2. If finance application is approved, it will be also in accordance with the UAE Central Bank regulations, as per the below mentioned details:

a. Finance tenure will be up to 48 months (60 months for customers working for MOD)

b. A transaction fee will be charged as stated later in this document

c. A grace period can be granted for the first installment of the liability determined in the Finance Contract, (for instance, if the finance tenor starts from Jan. 01 2021,at an agreed profit rate, the contract will be signed after profit calculation therein on this basis, and both parties agrees that settlement will start on May 2021.

3. The Bank has the right to cancel or amend the finance approval before executing the finance transaction with a prior notice to the customer

4. 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 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 subject of the contract in any manner, 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. For more information, please review the relevant Form issued along with the finance approval

5. Once finance contract is signed, customer must abide by the terms, conditions and the fees of the finance

6. Other Terms & Conditions are to be considered after executing the finance:

a. If the requested transaction is Additional Personal Finance, it will be a separate independent transaction from any previous existing transaction, with new conditions based on the bank’s approval for such Additional Finance.

b. Finance installments has to be paid on the due dates, and if customer fail to pay any installments for any reason the remaining installments shall become immediately due and payable without the need for any notice and the bank may claim the remaining installments through the legal procedures

c. If the customer fails to pay any finance installments on the due dates, this may affect customer’s credit rating, which may limit the customer eligibility to another finance in the future from the bank or other banks

d. In case of a delay for more than 7 days from the due date of the installment, Bank may apply the donation clause and charge 1% of the installment amounts on monthly basis until the past due installment amounts are paid. The bank may use such amount to recover the actual cost of the follow-up and collection of that default amounts.

e. If the salary is one of the securities required for the finance, customer needs to transfer the salary to the bank as soon as the required finance transaction is completed, and in the event of termination of the customer’s services by customer’s employer and transfer of End of Service benefits (EOSB) to the account, or in case of resignation or changing employer, the bank is entitled to block the EOSB and any other amounts available in the account in order to pay any overdue amount (s) of the finance and to settle any installments on its due date, or transfer the EOSB/amounts to pay the installments that have not been settled according to their due dates

Fees and charges details:

1. Administrative/Documentation fee of 1% (Minimum AED 500 and AED 2,500 maximum) of finance amount will be charged

2. Profit rates start, for instance, from 5.33% on reducing balance (2.89% fixed) and the percentage is determined based on customer profile

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

Example: If Finance amount of AED 100,000, Tenure of 48 months, and Profit Flat rate is 2.89% (5.33% reducing), liability details will be as follows:

· Profit amount : AED 11,496

· Total amount : AED 111,496

· Monthly Installment : AED 2,323

· Administrative Fee : AED 1,000

· Takaful Fee : AED 629

4. If customer wishes to make an early settlement in the future for the outstanding amount, customer will be required to pay an additional amount as an early settlement fee of 1% on the total remaining principal amount of the finance, up to a maximum of AED 10,000, which is in accordance with the UAE Central Bank regulations, as illustrated in below example:

Example: If the total outstanding of the Finance Liability is AED 100,200 (AED 90,000 principal amount + AED 10,000 deferred profits + AED 200 accrued profits till settlement date), the customer will be required to pay AED 91,100 to settle the finance, and that amount consist of the following amounts, given that the amount of Deferred profits (AED 10,000) will be dropped:

• The outstanding principal amount (AED 90,000)

• Early settlement fee of 1% of the outstanding principal amount (AED 900)

• The amount of accrued profits (AED 200) till the settlement date.

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

5. Value added tax (VAT) of 5% flat will be charged separately on the applicable Fee/charges

6. If customer is a member of the Armed Forces (MOD) and wants to make an early settlement for finance outstanding amount, early settlement fee will not be charged.

7. If the requested transaction is a liability takeover from another bank, then, Documentation fee (1% of liability value) will be waived, however this fee percentage will be collected on any additional amount (if requested)

8. Life Takaful Fee:

a. A Life Takaful fee will be charged on the total liability amount (principle + profit) in order to cover the outstanding amount in cases of death or permanent total disability, God forbid (Kindly refer to the Schedule of Fee & charges on Bank website to know the Takaful Fee)

b. The proceeds of such policy shall be used only to settle the finance outstanding 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

c. 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,

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

I declare that I have read and understood the above mentioned terms and conditions, and hereby sign

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

Name: …………………………………………………....……………....…………………....…………….....
Signature: ……………………………………………………………....……………....……………....….....
Date: ………………………………………………….....……………....……………....……………....

Terms and Conditions