Sharjah Islamic Bank Personal Loan -Requirements, Eligibility, Profit Rates

Sharjah Islamic Bank Personal Loan -Requirements and Eligibility

Do you need the Sharjah Islamic Bank Personal Loan urgently? Take a minute and go through this article to find out the requirements, check if you are eligible and the profit interest rate attached to the personal loan. By the way, you will also see if you meet the minimum salary for Sharjah Islamic Bank Personal Loan.

Meanwhile, before you go ahead to apply for Sharjah Personal Loan in the bank, check out some reviews and historical facts about the Bank. This will guide you into making a great decision as to the issue of should be treated with great financial care.

Sharjah Islamic Bank Review

Here you will find a brief history of the bank, its owners’ and how it operates in UAE ( the United Aarab Emirates and some neighboring Islamic countries).

Historically, Sharjah Islamic Bank initially was known as the National Bank of Sharjah located in the Emirate of Sharjah in UAE.

The bank was established in the year 1976 and in 2004 it became a fully Sharjah compliant Bank. Thereafter the bank went into full blown business of offering full banking activities including the Sharjah Islamic Bank Personal Loan. The personal loan has 2 major categories which are the GOODS MURABAHA and the Service Ijaran.

It has since its operation in 2004 been offering personal loans to residents of UAE without interest rates as the conventional banks. However, the charge of interest rate is on the profits made from the investment.

How does Sharjah Islamic Bank Loan Work Generally?

Basically, Islamic Banks do not give out loans to their borrowers. Yes! That’s the truth. Hence, the concept of borrower and lender is not technically necessary when describing an Islamic Bank.

Interestingly, the bank merely purchases assets on behalf of the customer in need of the fund and charges the customer based on profit interest. This is because Islamic Banks are prohibited generally from making money out of money by charging interest on the principal amount borrowed.

Benefits of Applying for Sharjah Islamic Personal Loan

There are numerous benefits of applying for the Sharjah Islamic Bank Loan that you can enjoy. The loan is available for goods (Murabaha) and for services( Ijarah), shares investment in UAE companies, Education. Let us give you a detailed insight into the benefits of the Sharjah Islamic Bank Personal Loan.

The Goods Murabaha: Business personnel can always apply for the Sharjah Islamic Bank Personal Loan to finance their business and pay a minimal interest rate on the profits realized.

Service Ijarah: This form of Islamic personal loan covers personal expenses like wedding costs, umrah, education, medical bills, rents, and other services not including goods. You can always take put this form of loan to finance any event or occasion.

No interest Rate charge of Principal Sum: The Islamic bank personal loan is not made to charge an interest rate on the principal amount. This means that the bank does not make money out of money as we have said earlier. Instead, the Bank charges is called the ‘PROFIT-INTEREST RATE”.

Lower Late Repayment Fees: Unlike the conventional banks, the repayment fee for late settlement is usually at the rate of 1% per annum.

Presence of Incentives for Early Loan Settlement: When you settle your loan before the expiry or due date, you are usually given a rebate called lbra. Although, it is not all the Islamic loan banks that offer these incentives for personal loans. So you can always check from your lender to know if they offer incentives.

Quick Approval Process: The process of applying for the Personal Loan is very quick so you can meet the urgency of the situation. The whole paperwork signing is fast and release of funds too.

Fixed Repayment Amount: The loan repayment amount does not change like other conventional loan institutions like rocket mortgage and Scotiabank loans.

Sharjah Islamic Bank Personal Loan Requirements

There are some criteria to determine if you are in fact eligible for the Sharjah Islamic Bank Personal Loan. Eligibility criteria differ with different Islamic Banks.

UAE Residents Only: The Islamic loan is offered only to residents of the UAE only. So if you are outside UAE, you are not eligible for the SIB personal loan.

Good Credit Score: A credit score is a hallmark of determining whether you will get approved for any Islamic personal loan or other conventional loans elsewhere. If you have a bad credit score, your chances of getting the loan even if you meet other criteria are low. No bank would want to give its money to known loan defaulters.

Account Requirements: For you to be eligible for the Sharjah Islamic Bank Personal Loan, you should provide an evidence of having any of the following accounts:

  1. Sharjah Islamic Financial Services (SIFS)
  2. Dubai Financial Market (DFM)
  3. Abu Dhabi Securities Exchange (ADX)

Employment Status: Like conventional loans, the SIB personal loan requires that you should be employed or self-employed at the time of applying for the loan. Thus, this is to prove that you have a means of earning or salary so as to be able to pay back the loan.

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Sharjah Islamic Bank personal Profit Rates

Shariah Compliant Banks do not charge interest rates on loans. However, your SIB personal loan charges you a profit interest rate one the loan. The Sharjah Islamic Bank’s personal profit rate is determined by several factors like credit score, loan amount, total term, and other factors considered.

Sharjah Islamic Bank Personal Loan Documents

If you meet all the criteria above, then you have to be in possession of these documents below for the Sharjah Personal Loan application to be successful. They are;

  • A current Emirates ID.
  • The applicant’s original passport.
  • Expatriates will also have to show a valid UAE residence visa.
  • The last 3 months of the applicant’s bank statement.

Sharjah Islamic Bank Personal Loan Minimum Salary

  • Minimum salary of AED 5000
  • Applicants should be 21 years & above

 Profit Rates

 Flat rate: 3.79% | Reducing rate: 6.87%

 Maximum Loan Amount             

 AED 300K

 Early Settlement Fees

 1% of the outstanding amount

 Arrangement Fees

 1% of the approved loan amount

 Tenure

 48 months

 Age

 21 – 60 years(Expats) & 65 years(UAE Nationals)

  Minimum Salary

 AED 5000

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How to Calculate Sharjah Islamic Bank Profit Interest Rate

You can always use the Sharjah Islamic Bank loan calculator on the website to determine your rate. Simply input the loan amount, the term, and the profit rate to calculate the rate quickly.

Frequently Asked Questions

Do UAE Nationals have any special benefits for applying for the loan?

A. Yes, UAE Nationals get high finance amounts by applying for Sharjah personal loans.

Do we get a grace period while paying installments of the Sharjah personal Loan?

A. There are a 3 months grace period allowed for your 1st monthly payment.

Do we need to provide savings or guarantors to take out a loan?

A. No, while applying for a personal loan, you need not provide any guarantors or savings.

How does the bank decide our interest rate and monthly installment?

Most importantly, Keeping the following factors in mind Sharjah Islamic bank decides on the interest rate and monthly installments:
1. Monthly income
2. Credit history
3. Debt obligations
4. Loan amount disbursed

What extra charges do we have to pay while applying for a personal loan in Sharjah Islamic bank?

You need to pay the processing fee, application fee, and pre-closure fee.

Is there any late Payment Penalty on SIB Personal loans?

If you don’t make your payment when due, you incur a late payment fee of AED 200 for defaulting every month.

What is the SIB Personal Loan Processing Fee?

A processing fee of 1% is charged on the total borrowed amount. Sometimes, the minimum fee is AED 525 and can be higher sometimes.

   Get in touch with Sharjah Islamic Bank Customer Care

About LIFEACK.COM

Lifeack.com is owned and managed by Peter Okonkwo. A corporate lawyer, and financial analyst. He has years of experience in insurance, mortgage, and personal loans. He loves writing and playing football. You can contact him through the contact us page.

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