KEY FACTS: SMILES COVERED CARD

Thank you for applying for Sharjah Islamic Bank Smiles Covered Card. To ensure transparency regarding the bank offer, we request you to please go through the declaration given below and sign your acceptance for the same. Should you require any further information, please contact our 24-hour Call Centre team on 065999999 or visit our website www.sib.ae

Type of Smiles Covered Card Requested:

Card Offerings:

Titanium “Smiles” Card benefits:

·         Free for life

·         For Every AED 2 spent, you will get 1 Smiles on Domestic and 2 Smiles on International spends

·         Get 0.5 Smiles on transactions under ( education, government services, utilities, supermarket) Categories

·         Free unlimited lounge access in 10 key Middle East airports

·         Instant cash

·         Mastercard® Priceless offers

·         Buy 1 Get 1 Free VOX Cinema Ticket - Up to 2 tickets per month

World “Smiles” Card benefits:

·         50,000 bonus Smiles (when you spend AED 20,000 in 90 days)

·         For Every AED 2 spent, you will get 1.5 Smiles on Domestic and 3 Smiles on International spends

·         Get 0.75 Smiles on transactions under ( education, government services, utilities, supermarket) Categories

·         Free unlimited airport lounge access to over 850 airports around the globe

·         up to 10% back on your hotel bookings at Booking.com

·         “Cleartrip” airline discount

·         Luxury serviced apartment discounts

·         Hertz “Gold Plus” Rewards® Five-Star membership

·         Discounted fast-track travel visa service

·         Mastercard® Priceless offers

·         MyUS premium shipping discounts

·         travel inconvenience & cancellation insurance

·         Travel medical insurance

·         Buy 1 Get 1 Free VOX Cinema Ticket - Up to 4 tickets per month

*Charges are VAT inclusive

Required Documents:

Key Facts on using Covered Cards

(Important to read carefully and understand)

1. It is advisable to always make monthly payments more than the minimum due requested according to the last statement issued by the bank in order to replenish your Wakala account ( available balance to use) rather than making minimum payment that mainly covers the fees and charges on the Card and only small portion remains as an available balance to use.

2. In case you choose to make only the minimum payment by the due date, then the bank will keep calculating the Profit ( net between the Murabaha and Wakala Profits) on daily basis till the full Wakala outstanding (Card available balance) is covered. This includes new transactions made after the statement issuance.

3. Please ensure that you round up the total dues requested by the bank and pay the exact amount before or on the due date to avoid paying the profit that is calculated on daily basis until the payment date. To clear any doubt, below example provides illustration on this payment scenario.

• If the cover is AED 10,000 and you used the AED 10,000 (out of which
AED 3,000 is cash withdrawal):
a. If you pay  AED 10,000, you will pay to the bank profit for AED 3,000
b. If you pay less than AED 10,000, you will pay profit for the full AED 10,000

• If the cover is AED 10,000 and you  used AED 8,000 as retail purchases:
a. If you pay AED 8,000, you will not pay profit.
b. If you pay the minimum up to 7,999, (or fails to pay any amount), you will pay to the Bank profit for AED 8,000 = {AED 10,000 -AED 2,000}.
c. If you fail to pay any amount, you will pay to the Bank profit for
AED 8,000 and LPF (donation) charges shall apply.

4. If you will pay the total outstanding on or before the due date, SIB will credit the difference between the Murabaha profit and the Wakala profit as bonus, and in this case no profit to be paid by you to the bank.

Warning! Continuous failure to make the regular payments on time, will expose you to further charges (Late Payment to Charity) and may lead to further legal action by the bank.


I have understood the following information for the selected Cashback Covered Card :

• Product details – Product features, Cashback offer, payment terms and documentation requirements.

• Cashback Points will be awarded on the card based on the spends made as per the transaction category and awarded on a monthly basis after the issuance of statement.

• The bank, at its discretion, has the right to change the fees or any offer terms at any time without obtaining customer’s written consent, provided that such a change to be communicated to the customer through means of communication that guarantee customer has been advised. If the bank does not receive any objection from the customer within 60 days from notification date, this will be considered as customers’ consent. However; in case the customer doesn’t agree to the change made by the bank, the two parties may agree to settle the relevant card liability or shift to another product.

• Once the Covered Card is received by the customer, the customer shall be liable to make any payments on the card as requested by the bank via SMS or monthly statements. To avoid any doubts regarding payments date, it is advisable to contact the call center upon card activation to check this information.

Important terms related to Covered Cards

Card Usage Account
means (Covered Card) All Card Account transactions’ entries that shall be transferred to the relevant Wakala Investment Account for any debit transactions made by the customer or charges on the card.


Murabaha Contract
means the Bonds Murabaha Contract embedded as part of the Covered Card application between the Bank and the Card Holder under which the Bank had sold to the Card Holder, for the Sale Price, identified and specific number of Bonds.

Murabaha Profit
means the monthly installment due that is supposed to be paid by the Card Holder over the period of the Murabaha Contract. This installment is equal to:

Murabaha Principal amount (Covered Card limit) * Murabaha Profit Rate
* 360 / 12 * number of days in a month.

Collect on Monthly basis, such amount is fixed and shown as debit value in customer statement.

Charged Profit
means the net amount between the Murabaha and Wakala Profit before Wakala Investment account. as Arabic term is available.

Wakala Investment Account
means the Wakala Investment Account opened purposely to represent the Card usage cover. The sale proceeds of the bonds purchased under Murabaha will be deposited in the Wakala account and customer can utilize every month.

Wakala Profit
means the profit generated to the customer from its Wakala Investment Account, calculated, on monthly basis, as:

Wakala unutilized balance * Wakala Profit Rate * 360 / 12 * no of days in a month. (the amount of this profit is variable based on the unutilized Balance in the Wakala Investment Account and shown as credit value in customer statement.

Bonus
means the rebate given by the Bank as result of paying the full outstanding as requested in the Statement of account issued by the Bank on monthly basis.


Cooling-off Period:

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  , wherein the customer may 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, starts using the product and availed itself, in any manner, of the products services , 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.
Alternatives to Covered Cards:

There are other products offered by the Bank that may suit your needs, however they do not have the benefits of Covered Card

Debit Card:
You can make purchases using your Debit Card that is linked to your current/saving account, however Covered Card usually allows you to make purchases with higher limit than available funds in the current/saving account. You will enjoy a free repayment period of up to 17 days from statement issuance date which is known by the ”Due date”. Also there is a loyalty program available on Covered Card versus the Debit Card where you can earn the points against your purchases, thereby you can save more.

Personal Finance:
This product is designed for medium or long term borrowing needs with higher amount than a Covered Card limit. For daily or short term needs, a Covered Card is a more convenient and recommended solution. Also, Covered Card limit is a revolving limit versus Personal Finance which is for one time use.

Important Information about Bank Procedures:

Delinquency (unsettled dues) on the Covered Card
• In case of any delinquency on the card (missing due date payment), the Bank has the right to cover any outstanding dues from any existing
account held at the Bank. This includes any current or saving account or fixed deposit.

• The Bank has the right to contact you by our Collections Department and remind you of the total dues that you have to cover to avoid further delinquency or affecting your history in AECB (Al Eithad Credit Report).

• In case you are totally unreachable, the Bank shall contact the reference details available in our records in order to reach you.


Covered Card Cancellation
• Before placing cancellation request, you must ensure that the outstanding balance is entirely settled and no further dues to be paid to the Bank.

• Some transactions may appear after you make the payment which are not settled or delayed by the merchant or retailer. You will still be liable to make those payments.

• Once the outstanding balance is paid off   please contact our call center to proceed with the cancellation process that may take up to 5 working days.

• In between, you may receive a call from our retention department to understand the reason of cancellation and resolve any issue pertaining to the card. In case you agree to keep the card, then request shall be dropped.

Your obligations to control fraud and action to be taken in case you suspect any fraud

1. Always keep your card and transactions details safe and never disclose card details (including includes username, passwords, OTP for online transactions) to any third party.

2. Beware of promotions with large prizes or discounts and contact the Bank for reporting or clarifying any doubt.

3. In case you receive any SMS of transaction that you have not made it yourself, please block the card immediately via our online or mobile banking application or contact our call center. Moreover, you would need to fill in a dispute form at our branch to allow us to investigate from our side.


For further details regarding your Covered Card, please check the detailed terms and Conditions available on the website. www.sib.ae



Application Processing and Approval:

I agree that:

·         The information and documents, security cheque enclosed with the application form are true and correct and will become part of the banks record and will not be returned in case of rejecting the application.

·         Sharjah Islamic Bank, UAE is entitled, at its sole discretion, to approve or reject the application of the Cashback Covered Card.

·         By signing the declaration form, I have read, understood & agree to abide
by the terms and conditions as set out on the application form for Sharjah Islamic Bank Cashback Covered Card.



Name of applicant: ....................................................................................................................


Signature of Applicant:                                                                                     Date:

This Product has been approved by Internal Sharia’a committee basis the Islamic Rules of Murabaha and Wakala Concepts, and upon selling the proceeds of the Murabaha and depositing the same into the Wakala Investment account the Cashback Covered Card shall be issued.