 Profit Rates

Islamic Term Finance Solutions for Businesses | RAKislamic UAE

Islamic Term Finance

<ul>
<li style="font-weight: 400;" aria-level="1">Minimum turnover AED 1M (turnover to be as per latest bank statement credit summation)</li>
<li style="font-weight: 400;" aria-level="1">Minimum 3 years business trading</li>
<li style="font-weight: 400;" aria-level="1">Must meet the Bank&rsquo;s financing criteria</li>
<li style="font-weight: 400;" aria-level="1">Valid trade licence</li>
<li style="font-weight: 400;" aria-level="1">Other business documents, such as Memorandum of Articles or Power of Attorney (if applicable), etc.</li>
<li style="font-weight: 400;" aria-level="1">Other banking or financing assessment information or documentation (if and when required)</li>
</ul>
&nbsp;

Other Requirements

<ul>
<li>Customer contribution towards machinery procurement to be confirmed in order to proceed with the approval.</li>
<li>Once the Finance is disbursed, the Bank will pay the asset supplier directly, or alternatively place the disbursed funds under lien till such time the details to pay the supplier are in order. However, profit will continue to apply on the full finance outstanding even if part or all of the finance proceeds are under lien.</li>
<li>Last monthly commitment amount could vary depending on moratorium period, changes in floating rate indices and payment delays.</li>
<li>If you fail to make any payment due under the Finance or otherwise breach our terms, we reserve the right to repossess the asset (if applicable) and liquidate / sell the same to settle the outstanding amount.</li>
<li>No more than 2 deferrals of monthly commitment are allowed a year.</li>
<li>The Bank may reject requests for monthly commitment deferral if payments are irregular, or if there are 4 cheque / Direct Debit System (DDS) returns in the last 12 months, or if the request does not meet the Bank&rsquo;s internal risk policy requirements.</li>
</ul>
 Warnings
<ul>
<li>An approval for the Finance, once sanctioned, is only valid for 30 days from the date of approval and the disbursal of the facilities must be completed before that; failing which re-approvals need to be sought internally.</li>
<li>If you pay off the Finance prior to the due date or pre-settle the facilities in full, you will pay prepayment charges at the rates described below.</li>
<li>If you pre-settle the Finance transaction prior to the due, you will pay prepayment charges at the rates described in the Service &amp; Price Guide.</li>
<li>If you are late in payment or fail to make a payment on the due date, a late payment donation amount charged at the rates described in the Service &amp; Price Guide.</li>
<li>If you fail to make a payment or otherwise breach the terms of the Finance, this will be a default and the Bank will be entitled, among other things, to:</li>
</ul>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) cancel the Finance, demand full payment immediately and enforce security or liquidate / sell assets, if applicable;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) report the default to the appropriate regulatory authorities and credit&nbsp;&nbsp;&nbsp; rating agencies, which will affect your credit rating;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) bring legal proceedings against you.

Risks and Limitations 

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Deferral allowed, at Bank's discretion 

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Partial or full early settlement of the Finance (% of settled amount)

Partial or full early settlement of the Finance

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Eligibility

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Payment: Monthly Commitment (Equated Monthly Instalment)

Fees

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Maximum finance amount of up to AED 3 million

Max finance amount up to AED 3 million

Al Etihad Credit Bureau check fee 

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Terms and Conditions Notification

Important Information 

Islamic Term Finance - Quick approvals

We understand that sometimes you need a piece of equipment or finance quickly in order to start or complete a project. 

Our speedy approval process will have you up and running in no time.

Quick approvals

Processing, due diligence & documentation fees: up to 2.5% of the finance amount

Other fees: % of finance, up to 2.5% max of the amount

Profit rate from 10% to 17% reducing p.a.

Profit rate for the Finance ranges from 13% to 17% reducing p.a 

Islamic

AED 50,000-above

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<ul>
<li>The Bank may amend the features, fees, charges, terms and conditions of the Finance with 60 days&rsquo; notice to you in advance. </li>
</ul>
Customer Obligations
<ul>
<li style="font-weight: 400;" aria-level="1">Pay all monthly commitment and other amounts due on the due dates without delay;</li>
<li style="font-weight: 400;" aria-level="1">Review this document and all other terms and conditions set out in the facility documents / application form in detail;</li>
<li style="font-weight: 400;" aria-level="1">Regularly check our website www.rakbank.ae for updates;</li>
<li style="font-weight: 400;" aria-level="1">Notify the Bank in writing if there is a change in your business income details, contact details, postal or location address, financial details, change in business activity or any other material information as declared in the facility documents / application form or otherwise conveyed to the Bank;</li>
<li style="font-weight: 400;" aria-level="1">Notify the Bank in writing prior to making any changes to ownership or management of the Company as was declared during the application process and seek consent; and</li>
<li style="font-weight: 400;" aria-level="1">Notify the Bank in writing if you wish to prepay your finance prior to its maturity.</li>
</ul>

Terms & Conditions

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Terms and Conditions

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Islamic Term Finance - Finance amount up to AED 3 Million

If your business needs to upgrade equipment, invest in new premises, or even extra cash for working capital, then Term Finance may be the right solution for your budget.

Finance amount up to AED 3 Million

AED 5,000-19,999

AED 10,000-14,999

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AED 20,000-49,999

Maximum tenure: 60 months

Max tenor: 60 months

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With Salary Transfer

Other fees:
<ul>
<li style="font-weight: 400;" aria-level="1">Due diligence, documentation and processing fees if the EMI due is not paid by the due date:</li>
<ul>
<li style="font-weight: 400;" aria-level="2">&nbsp;1 EMI overdue = AED 300,&nbsp;</li>
<li style="font-weight: 400;" aria-level="2">2 EMIs overdue = AED 400,&nbsp;</li>
<li style="font-weight: 400;" aria-level="2">over 2 EMIs overdue = AED 550.</li>
</ul>
<li style="font-weight: 400;" aria-level="1">In addition, there may be standard fees which apply to your dealings with us. Our schedule of fees can be found at www.rakbank.ae.</li>
</ul>
&nbsp;
A VAT at the current rate of 5% will be levied on the Bank&rsquo;s fees and charges, as applicable under UAE law.

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Benefits

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AED 30,000 & above

Have a question?
You’ll likely find the answer in our FAQs.

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Term Finance provides customers with a lump sum of cash upfront in exchange for specific financing terms. 

Customers agree to pay their financiers a fixed amount over a certain payment schedule with a fixed profit rate.

Term Finance

<ul>
<li style="font-weight: 400;" aria-level="1">Minimum age 21 years old </li>
<li style="font-weight: 400;" aria-level="1">Maximum age 65 years old </li>
</ul>

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Finance Features

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Enjoy complete finance solutions for your short and long term business goals. With quick approval time and collateral-free financing, you have the freedom to take your business to the next level.
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Designed for small to medium business

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Designed for small to medium business

Term Finance

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