• EIB Home Loan with 3 Home Finance Schemes

    EMIRATES ISLAMIC

    Emirates Islamic Bank Home Loan

    Emirates Islamic Bank was launched in 2004 and it was established to deliver high standards of banking services in compliance with Shari’a principles. EIB offers a wide range of products and services, Home Loan being one of them.


    You’re probably eligible for Emirates Islamic Home Loan if you are

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    Emirates Islamic Home Loan Minimum Age

    At least 21 years old

     Emirates Islamic Home Loan Maximum Age

    No Info

    Emirates Islamic Home Loan Eligible Employment Type

    Salaried / Self-employed
    with regular income

    Emirates Islamic Home Loan Minimum Income

    Earn more than the minimum income required


    Your Emirates Islamic Home Loan amount eligibility is based on these factors

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    Emirates Islamic Home Loan Minimum Salary

    No Info

    Emirates Islamic Home Loan Maximum Loan to property value

    80% of property value

    Emirates Islamic Home Loan EMI

    EMIs of other loans lower your eligibility


    Increase your eligible Emirates Islamic Home Loan amount by these steps

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    Emirates Islamic Home Loan Add Spouse as Co-applicant

    Make your spouse a co-applicant, and her income will add to your eligibility

    Emirates Islamic Home Loan Maximum Tenure

    Choose longer tenure loan up to 25 years

    Emirates Islamic Home Loan Add parents as Co-applicant

    Alternatively add your parents


    Documentation needed to apply for an Emirates Islamic Home Loan

    • 1. Copy of valid passport
    • 2.Last three months pay slips
    • 3.Original Salary Certificate
    • 4. Last 6 months bank statements reflecting salary credits
    • 5.Sale and Purchase agreement,

    Emirates Islamic Home Loan Interest RatesUpdated on 05 Dec 2016

    Emirates Islamic Home Loan Details
    Interest Rate (Monthly reducing balance) 3.49%
    Processing Fees 1% of the loan amount

    Types of EIB Home Loan

    EIB offers Home Loan to UAE Nationals and expatriates. EIB Offers following types of Home Finance:

    • Home Finance – Manzili
    • Home Finance – Bina’a
    • Commercial Property Finance

    Features and Benefits of EIB Home Loan

    The following are the features and benefits of the different types of Home Loan offered by EIB:

    1. Home Finance – Bina’a:

      Bina’a Home Finance is designed to suit the needs of UAE Nationals. The finance is based on the principles of Shari’a and customised solutions are offered and they are tailored to meet specific financial and personal requirements. The home finance solutions are offered at a competitive rate and longer tenures are offered. Home finance is offered for construction, lease and investment.

      HomeConstruct:

      Here you will get flexibility to build your home in the way you always dreamt of. The bank finances the construction using the Islamic principle of Forward Ijarah. The benefits are as follows:

      • Up to 80% of the current market value of the property you have selected will be financed.
      • The Bank finances high amounts and the approval is quick.
      • Highly competitive profit rates are offered.
      • The repayment tenures are as long as 25 years.
      • Monthly repayments are done on variable rate basis.
      • Takaful coverage is offered to protect your family from unforeseen events that lead to loss of life or injury.
      • Minimum documentation is required.
      • Processing rates are low.
      • Project monitoring and engineering services are available for no cost for properties under construction.

      HomeLease:

      Here you can select a completed property and the bank will help you will financing it. Ijarah principle is applicable. The bank will purchase the property that you are interested in and will lease it to you at rental or instalment. The property will be handed to you at a nominal cost at the end of the lease tenure. HomeLease also allows you to buyout your existing mortgage with another financial institution at competitive interest rate. The benefits of HomeLease are as follows:

      • Highly competitive profit rates are offered.
      • Minimum documentation is required.
      • Monthly repayments are done on variable rate basis.
      • Processing rates are low.
      • Takaful coverage is offered to protect your family from unforeseen events that lead to loss of life or injury.
      • The Bank finances high amounts and the approval is quick.
      • The repayment tenures are as long as 25 years.
      • Up to 80% of the current market value of the property you have selected will be financed.

      HomeInvest:

      You can invest in your home and gain great financial flexibility. The principles utilised are Musharakah and Ijarah. The bank will purchase a common share in the property and lease it back to you. This amount can be used to invest, plan for your children’s education, plan a vacation, etc. You can manage your finances with flexible monthly rentals. At the end of the lease period, the common share of the property will be sold back to you at a nominal cost. The benefits of HomeInvest is as follows:

      • Minimum documentation is required.
      • Profit rates are highly competitive.
      • Processing rates are low.
      • Monthly repayments are done on variable rate basis.
      • The Bank finances high amounts.
      • Approvals are quick and turnarounds are fast.
      • Takaful coverage is offered to protect your family from unforeseen events that lead to loss of life or injury.
      • The repayment tenures offered is 25 years.
      • Up to 80% of the current market value of the property you have selected will be financed.
    2. Home Finance Manzili:

      Manzili Home Financing makes it easy for you to own your home. The profit rates are low and the finance is based on Shari’a principles. Home Finance Manzili is offered to salaried residents, salaried non-residents, self-employed residents and self-employed non-residents. The benefit of Manzili Home Finance are as follows:

      • Variable profit rates starts at 3.49% per annum.
      • 1% processing fee is charged.
      • For buy-outs there is no processing fee charged.
      • You get 60 days instalment deferment.
      • Life Takaful is offered at a low rate.
      • You will be automatically enrolled for priority banking.
      • Credit card is pre-approved.

      There is a list of areas that include apartments and villas that are approved for completed property financing. They are as follows:

      Apartments:

      Palm Jumeirah Dubai Marina
      The Views The Greens
      Jumeirah Lake Towers Jumeirah Beach Residences
      Jumeirah Village Triangle/ Circle Burj Khalifa
      TECOM Downtown Dubai
      International City Dubai Silicon Oasis
      Arrows Overy Gardens Motor City
      Dubai Sports City IMPZ
      Uptown Mirdiff  

      Villas:

      Palm Jumeirah Jumeirah Islands
      The Springs The Meadows
      Emirates Hills The Lakes
      Jumeirah Village Triangle/ Circle Motor City
      Victory Heights Falconcity of Wonders
      The Villa Arabian Ranches
      Uptown Midriff Manazel Real Estate – Al Reef Villas
    3. Commercial Property Finance:

      Finance is provided for commercial properties under Ijara. Commercial properties include office space, warehouse, retail space, processing unit, labor camp, residential complex, etc. EIB either buys the property that you are interested in or you can let the investment on your property give you greater financial flexibility by releasing cash from the completed property. The features and benefits of Commercial Property Finance are as follows:

      • You get finance up to AED15 million.
      • Up to 70% of the property value is financed.
      • Repayment tenure offered is up to 15 years.
      • Profit rates are competitive.
      • Pre-approvals are easy and quick.
      • Other products and services are bundled with the Finance.
      • Finance is offered to completed properties in Sharjah, Dubai and Ajman.

    Documents required for Home Finance – Manzili

    Manzili Home Finance is offered to salaried residents, salaried non-residents, self-employed residents and self-employed non-residents. Following are the documents that you need to submit along with your application form while availing Manzili Home Finance:

    Salaried Resident will have to submit the following documents:

    • Copy of valid passport
    • Copy of valid residence visa for Expatriates
    • National ID for Nationals
    • Labour contract copy
    • Original salary certificate that covers details of designation, salary package and length of employment and it must not be less than 45 days old.
    • Salary transfer letter
    • Last 3 months pay slips
    • Last six months bank statements that reflects your salary credit
    • Liability letter that is less than 30 days old
    • Original offer letter from seller
    • Original Sales and Purchase agreement
    • Original Title Deed and Site Plan
    • Original receipts of the down payment made to the seller

    Salaried Non-Resident will have to submit the following documents:

    • Copy of valid passport
    • Original salary certificate that covers details of designation, salary package and length of employment and it must not be less than 45 days old.
    • Last six months bank statements that reflects your salary credit
    • Liability letter that is less than 45 days old
    • Latest tax return for previous two years
    • Credit Bureau Report
    • Original Title Deed and Site Plan
    • Original Sales and Purchase agreement
    • Original receipts of the down payment made to the seller
    • Original offer letter from seller

    Self- Employed Resident will have to submit the following documents:

    • Copy of valid passport
    • Copy of valid residence visa for Expatriates
    • National ID for Nationals
    • Original offer letter from seller
    • Original Sales and Purchase agreement
    • Original Title Deed and Site Plan
    • Original receipts of the down payment made to the seller
    • Trade license copy
    • Chamber of Commerce Registration copy
    • Copy of Partnership page, in case of multiple partners
    • Memorandum or Articles of Association copy
    • Audited Financials for last 2 years
    • Labor Contract copy.
    • Last 6 months personal account statements
    • Last 12 months Business Account statements

    Self- Employed Non-Resident will have to submit the following documents:

    • Copy of valid passport
    • Original offer letter from seller
    • Original Sales and Purchase agreement
    • Original Title Deed and Site Plan
    • Original receipts of the down payment made to the seller
    • Trade license copy
    • Chamber of Commerce Registration copy
    • Copy of Partnership page, in case of multiple partners
    • Memorandum or Articles of Association copy
    • Audited Financials for last 2 years
    • Labor Contract copy.
    • Last 12 months personal account statements
    • Last 12 months Business Account statements
    • Liability letter
    • Credit Bureau Report
    • Latest tax returns for last 2 years

    Fees and Charges on EIB Home Loan

    Here are the main fees and charges levied on an EIB home loan:

    Arrangement Fees

    Pre-approval Fees:

    • For salaried individuals applying for Bina’a: AED 1,500
    • For self-employed individuals applying for Bina’a: AED 2,500
    • Salaried and Self Employed for Manzili: AED 1,000

    Processing Fees:

    • Without cap, 1% of the loan amount is chargeable for all.
    • An option for fees to be deducted from Equity release is permissible.
    • In the case of a buyout with Equity release 1% of the amount of equity release is charged.

    Prepayment Fees for Pre Purchase of Leased Asset:

    Under construction or completed property for salaried individuals:

    • Full settlement Through Buyout or own funds can be done by paying 1% of the outstanding amount or AED 10,000, based on the one that is lesser.
    • 5 year Fixed Rate Product through own funds can be done by paying:
    • In the first 4 years: 1% of the outstanding amount or AED 10,000, based on whichever is lower.
    • After 4 years: It's waived off.

    Under Construction or Completed Property for Self Employed Individuals:

    • Full settlement Through Buyout or own funds:
    • 3% of the Outstanding amount for the 1st Year.
    • 2% of the Outstanding amount for the 2nd Year.
    • 1% of the outstanding amount, post 2nd Year or a maximum of AED 10,000.
    • 5 year Fixed Rate Product through own funds can be done by paying:
    • For First 2 years: 2% of the remaining amount.
    • 3 to 4 years: 1% of the remaining amount.
    • After 4 years: 0% of the remaining amount.
    • In case of a simple buyout: 4% of the remaining amount.

    Partial Settlement Fees:

    • Salaried: 1% of the remaining amount or AED 10,000 whichever is less.
    • Self-employed 3% of partial payment amount.

    Cancellation Charges:

    • Application before approval: AED 3,000
    • Application by customer after bank’s approval: For full case: AED 3000 and no refunds on approval fees.
    • Application denied by EIB Bank: No charges levied.

    The Emirates Islamic Bank (Listed - DFM: EIB), erstwhile Dubai Bank, is a popular bank with branches in and around Dubai. Its home loans are highly sought after and the bank experiences a good follow-up rate from its customers. It is a subsidiary of Emirates NBD, which is the largest firm in the banking sector in UAE and the Middle East in terms of total assets. The company believes in upholding Islamic traditions in the financial sector and, as such, follows the principles of Salam, Ijarah, and Murabaha when designing its loan packages.

    1. What are the different types of Home Finance Solutions offered by EIB?

      EIB offers Home Finance – Manzili, Home Finance – Bina’a and Commercial Property Finance.

    2. What are the different types of Home Finance – Bina’a offered by EIB?

      EIB offers 3 types of Home Finance – Bina’a, they are HomeInvest, HomeLease and HomeConstruct.

    3. What are the Shari’a principles followed by EIB while offering Home Finance?

      EIB follows Shari’a principles, Ijarah and Musharakah.

    4. Who can avail the Home Finance services offered by EIB?

      Home Finance is offered to salaried residents, salaried non-residents, self-employed residents and self-employed non-residents.

    5. How much value of the property is financed by EIB?

      Up to 70 – 80 % of the property value is financed by EIB.

    6. Is it necessary to have an account with the bank before I apply for a home loan?

      It is not necessary for an applicant to be an existing account holder with the bank. However, the right account will be opened for you once the bank has approved your application for a home loan.

    7. What is EMI?

      Equated Monthly Instalment as it is known in its extended form, an EMI is basically the sum you are required to pay to the financial institution that has granted you a loan. The amount must be paid before the due date each month and it contains a small percentage of the interest in addition to the principal.

    8. What is a loan with fixed interest rate?

      A home loan with a fixed rate of interest is one that maintains the same interest rate during the entire tenure of the loan. Fluctuations in the market will not affect your interest rate. Whether the rates in the market increase or decrease, your interest rate will remain the same.

    9. What is a loan with a floating interest rate?

      A loan with a floating rate of interest means that the interest rate will keep fluctuating depending upon the changes in market conditions. Customers who take out a loan with a floating rate of interest have the risk of making higher payments than initially budgeted if the market records an increase in interest rates. Similarly, payments will decrease if the rates in the market drop.

    What should you know about the interest rates on Home Loans?

    The main factor while taking a home loan is the interest rate. Home loans are easily available from various banks across the UAE and the interest rate that is applicable on these loans depends on the bank that offers that loan. It is the rate of interest on the Home Loan that affects the EMI and hence your monthly budget throughout the tenure of the loan.

    A Guide to Mortgages for First Time Property Buyers.

    Buying a property for the first time in your life and that too on mortgage? It is a huge expense and a massive commitment to get involved with. Hence there are certain things you will need to know about it before you can proceed.

    Home Loan Transfer to another Banks

    Ever felt like changing your lender? There are lots of things that make refinancing a mortgage a good idea and the chief among them is that if can help ease the pressure of monthly payments. You can also walk away with lots of benefits, depending on the bank.

    Cash finance at low rates against existing property.

    Did you know that you can avail finance by tapping into the positive equity of your property? Instead of letting your property to sit idle, you may use it to avail finances. Many banks provide cash advances against properties for a lower rate of interest. Using properties as a collateral will help get cash advances of a higher amount at a very low rate.

    Buy-to-let mortgages in the UAE

    Buy-to-let mortgages are best suited for the people who want to make an investment in the property with just the intention of letting out the property for rent. But since their purpose differs much from the regular mortgages, so does their other attributes. Hence it requires a well informed decision before opting for it.

    Home Equity Loans in the UAE.

    Home Equity Loans provide the facility for homeowners to borrow funds by putting up the equity in their homes as leverage. Home Equity Loans or Second Mortgages are among the easiest sources of cash a customer could wish for. And these being tax deductible, offer an additional benefit.

    Home Refinance Loans in the UAE

    Home Refinance Loans provide an option to the customers to opt for an additional finance on the existing property so as to get a better term and rate of interest than offered by their current mortgage. The second mortgage can be taken out once the first has been repaid.

    Subprime Mortgages in the UAE.

    Subprime Mortgages provides mortgages for the acquisition of residential real estate, sanctioned to customers with a bad credit history. Hence the risk of default on these loans is significantly higher and so are the fees to make up for the extra risk.

    Home Loans for the Senior Citizens in the UAE.

    Reverse Mortgages are a special kind of mortgages targeted only at the customers who have crossed the age of 62 years. The banks or the lenders provide the money against the equity in the existing property and also do provide for the payments to be made either monthly or occasionally in lump sums.

    Interest only Mortgages in the UAE.

    Interest only Mortgage in the UAE provide the facility to the customer to pay off the interest on the mortgage before the principal amount. Interest only mortgages come with a fixed term and have so many benefits apart from low initial payments and are suggested for the customers who intend to sell the property after the end of the mortgage.

    Fixed Rate Mortgages in the UAE.

    Fixed Rate Mortgages offer finance at fixed rates throughout the loan tenor and hence the monthly payments due on fixed-rate mortgages also remain the same. They are the exact opposite of adjustable rate mortgages in which the monthly payments may be low during the initial stages of the mortgage but could potentially increase to almost double the initial interest rates which will increase the monthly payments.

    News about EIB Home Loan in the UAE

    • AED 100,000 contributed to Khorfakkan Club for the Disabled by Emirates Islamic

      As a part of the bank’s commitment to support humanitarian initiative in UAE, AED 100,000 was contributed to Khorfakkan Club for the Disabled. The funds are to be used to support the club’s cultural, social activities, sports and towards various rehabilitation programmes.

      09th May 2016

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