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 1.79% 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:

Employment Duration:

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:

Fees and Charges:

-     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