The services chosen to differentiate onto the operation of this two banking system are Car loan, Share loan and Housing loan.
First Gulf Bank provides their customer with great flexibility and convenience to have their own dream car to purchase, their interest rates and terms are very favourable for the customers. The bank officer tries to provide their client with the most hassle freeway which could be possible to minimize their problem and help them to move with their car.
"Auto Loan" or preferably they are known as "First Auto Loan" is the name given for the facility to avail the loan against car or other vehicle loan. The facility terms to provide a maximum of 5 year loan repayment period to the individual with instant approvals and there is very minimum or basic documents requirement for the loan which are to be submitted by the individual who is applying for the loan. The loan value is calculated on the basis of ex-showroom price to provide financing up to 90 % of that price with 10% down payment. The clauses of the bank for general working force or employee termed candidates includes the minimum age of the applicant should be 21 years and maximum would be 60 years, the applicant must have a source of regular income from last two years and for business owners or self - employed individuals the maximum age limit is 65 years of age and his business should be a profit earning business entity for at least last three years.
The loans are being granted at a competitive interest rate according to the market trend. It depends upon the loan amount, for loan amount 100,001 to 200,000 interest charged is 6%. (first gulf bank)
The bank officials call it as a "Car Finance" for the facility to avail the loan against car loan. The service provided by ADIB terms to have the quickest approval process for granting the loan as compare to other financing institutions present in UAE.
The bank provides with a 60 months repayment period for the loan holders with the basic condition that the loan holders has to only pay 20 % of the car value as the down payment by their side and the rest would be paid by the bank itself.
ADIB has mentioned that the candidate who is applying for car loan should meet the basic criteria of taking the loan with two additional documents such as Bank Statement showing the transaction for last three months and Quotation addressed to ADIB, but a small relief provided by them to the customers is that they don't have to directly transfer their salary amount in the bank but personal deposits will be accepted. The major point to be considered for applying the loan in ADIB is "the applicant should not have any bad debt records regarding car loan with any other UAE nationalised bank".
Conditions:
Individual minimum salary : AED 5000
Age criteria: at least 21 years
Original passport for the address validation.
He must be working for at least a period of 6 months in a single company at the time he is coming for the loan application.
It been recommended by most of the car dealerships agency and showroom owing to its attractive features and offer customers with a very low profit rate.
(ADIB)
Share Loan
It is the most quickest and a type of readymade solution for the citizens because they do not need to sell their sells. "Share Loan" is name given for the facility of availing the loan against shares is provided to individuals only and the service can be renewed or reviewed at every 12 months from the date of initialization of loan.
For availing of the loan the candidate must be of 21 years of age or above, his monthly income should exceed AED 10,000 with a valid citizen proof for example resident proof, valid notarized copy of passport and other share documents.
The processing fee acquired by the bank for granting the loan ranges from 1 % - 1.35 % depending on the loan amount the individual has requested. However the interest rate charged by the bank ranges between 12 % - 25 %. The profit rate margin of First Gulf Bank ranges between 5.09 % - 6.99 %. However, the withdrawal charge of FGB is quite low it ranges between 0.1 % - 0.3 % and the repayment period of the bank is up to 24 hours. (first gulf bank)
"Shares Finance" is name given for the facility to avail the loan against shares is available to the artificial individual i.e. company also with individuals.
The bank allows their customer to be free while trading with the shares at the prices they are willing to do it, the financing amounts offered are very attractive and are highly competitive.
The loan facility to the companies is provided on certain specific basis which majorly includes the grant certificate issued by the UAE government regarding the eligibility to apply for loan against shares. The minimum income of an individual should exceed AED 5000 and he should avail a salary certificate not older than 30 days before applying for the loan. The processing fees incurred by the individual is 1 % i.e. ranging from AED 500 - AED 2500 and the profit rate margin of the ADIB ranges between 4.99 % - 6.59 %. The interest charge charged by the bank ranges between 12.5 % - 25 %. The withdrawal charges charged by ADIB starts from AED 0 to AED 2 - AED 5 per AED 1000, The cash withdrawal from the home branch by the individual is free of cost. The repayment period of the bank is up to 48 hours and the bank doesn't require any installation fees for the first three month. There is no option for the postponing the payment option in the trading terms. (ADIB)
Housing loan
There is no separate title in FGB for home loans, the bank provide it as a personal loan to the applicant.
The bank provides with a maximum loan of 2 million dirhams for an time period of 30 years. The bank is always eager to fulfil their customer dreams.
Criteria for UAE nationals/expats:
The applicant must be an employed at any reputable private institute, government office or is attach to a semi-government organization.
He should be having a minimum monthly income of 10,000 dirham.
The applicant must be of at least 21 years of age.
A valid copy of passport with a residency approval.
The applicant has to submit his application to the financial department who will forward the application to the bank for the approval. A special dedicated team is being associated for guiding the customers through the process and they assist their client over a year even after hand over their houses to them to check for any problem.
Benefits to the customers:
There is no salary transfer only just an account is to maintain with the bank.
The loan amounts are very attractive.
Documentation required are very least which reduces the problematic part for the customers.
Interest charged is 7% for the loan amounting between 50,000 to 100,000 dirham. (first gulf bank)
Abu Dhabi Islamic bank financing solution is for everyone, the bank works for bringing happiness in their customer faces.
Criteria or requirements:
Minimum age should be 21 years
Minimum salary 1) for UAE nationals 10,000 dirhams
2) for expats 20,000 dirhams
- He must be a verified employee
- He must be having a valid nationality card and resident permit with him.
- A valid salary certificate is required from the applicant.
- Any additional income verification certificate.
- banks statement for the last three months
Benefits for the customer who are buying from the developers:
The bank provides the loans at a competitive profit rate of 4.49 per cent.
Providing salary based customers with a six months optional grace period for their convenience.
The option for salary is optional; the power stays with the applicant.
Provides with free partial settlement to about 30 per cent on the annual outstanding.
The loan is given for a period of six years at an interest of 5 per cent for the salary based customers.
Maximum financing cash is up to 20 million for the UAE nationals while only 10 million dirham for the expatriates.
For the customers who are taking loan to build their house:
25 years of repayment option.
Financing is provided for up to 20 million dirham.
The loan fund can even be used to start of the construction. (ADIB)
Example:
A man earns - 25,000 dhs
The bank will able to give him a loan of maximum 200,000 dhs at the rate of 6.49 percent for a period of 5 years.
Amount charged as interest will be 187,800 dhs
Every month the personal has to pay around 3130 dhs.
"Qard al-hasan" is a only single loan system which could exist as a Islamic banking concept for the services provided by ADIB since the bank does not charge any additional charges other than the minimum fixed service charges prescribed by the UAE government to the applicants coming to their bank asking for loan. (ADIB)
