Personal loans from Sharjah Islamic Bank are offered at very competitive rates and the interest payable per month would be based on the original loan amount throughout the tenure of the loan. The following table illustrates the rates offered by the bank and the loan tenures that are acceptable -
|Flat Rate||As low as 3.79% per annum|
|Floating Rate||As low as 6.87% per annum (estimated)|
|Early Settlement Fee||1% of the outstanding loan amount (principal + profit)|
|Processing Fee||1% of the loan amount|
|Insurance Fee||At the discretion of the bank|
|Loan Amount||Maximum of AED 300000 (subject to 20 times the monthly salary)|
|Loan Tenure||At the discretion of the bank|
The rates mentioned above are subject to change depending on the bank’s discretion. Additionally, a lower rate might be offered by the bank depending upon the customer’s credit score and financial liabilities at the time of applying for the loan. Being an Islamic bank, the bank can also waive off portion or all of the profit if any early settlement is being done.
Overview of Sharjah Islamic Bank Personal Loans
Sharjah Islamic Bank is one of the largest banking institutions in Sharjah and has been in operation for over 30 years being established in the year 1975. Set up as the National Bank of Sharjah, in 2002 it converted into an Islamic bank. This bank operates in all major financial transactions like savings, loans, corporate banking, treasury, leasing, property management and others following the Shari’ah law. Under private banking, Sharjah Islamic Bank provides high loan amounts through personal loans termed as Murabaha. These personal loans are offered for UAE nationals and expatriates and can be used to purchase goods like household furniture, electronics and domestic appliances, building material, boats, motorcycles and tools & machinery.
Calculating the EMI on Sharjah Islamic Bank Personal Loans
The EMI payable on Sharjah Islamic Bank personal loans can be calculated by the interest rate provided to a particular customer. While the minimum rates have been mentioned above, the final loan interest rate is dependent on the drawn salary of the individual and will be as per the discretion of the bank.
Factors affecting Sharjah Islamic Bank Personal Loan Interest Rates
Personal loans from Sharjah Islamic Bank have a few factors that affect the interest rates applicable. A lower or higher interest rate might be subject to the following factors –
- Employment History – A minimum one year employment at the current organisation and minimum 3 years employment history is a very preferred attribute that would allow one to avail lower interest rates. A stable employment history allows the bank to have more trust on the customer. Additionally, if your organisation is in the list of Sharjah Islamic Bank’s organisations, the chances of getting a better interest rate are even higher
- Loan Tenure – Flat rates mean the interest paid is calculated always on the main loan amount. Choosing a shorter tenure is advisable if one wishes to avoid paying interest for a longer time
- Monthly Income – For availing a personal loan from Sharjah Islamic Bank, an expatriate has to have a minimum monthly salary of AED 8000. In case of a national, the bank might consider the loan amount and take a further decision. Nevertheless, with a higher monthly salary, the advertised lowest interest rate from Sharjah Islamic Bank can be availed
- Credit Score – Offered interest rates and the time taken for the approval of the personal loan depends on one’s credit score too. Though not a central factor, it’s important to maintain a good credit score in order to avail the best offers from the bank regarding personal loans
Key Pointers about Sharjah Islamic Bank Personal Loan Interest Rates
- Minimum monthly salary requirement is AED 8000 for availing a personal loan
- Processing fees are 1% of the loan amount and might be charged as per the discretion of the bank
- Salary transfer is required to avail a personal loan
- Identity documents and bank statements of 3 months need to furnished along with the loan application form while applying for the loan