Apply for the Emirates Islamic Personal Finance

Murabaha is a form of Shariah compliant sale contract whereby Emirates Islamic (as a seller) sells the Certificates to the Customer for a price equal to the Certificate Cost (the finance amount) plus the Murabaha Profit.

The Certificates are Shariah compliant Certificates deposited in Nasdaq Dubai. The value of each certificate is USD 10.00-. The Certificates represent a common share in Shariah compliant assets such as Sukuks, equity, real-estate assets etc..

The Murabaha offer for Personal Finance is valid for three (3) hours from the time you receive the email.

On expiry of the cut-off time, if we do not receive a response from you, Emirates Islamic will consider the Murabaha offer for Personal Finance is accepted by you.

Once the Murabaha Sale is executed, you then have 2 options:

• Option 1: Advise us of your Custody Account Number with Emirates NBD Securities L.L.C. to which the Financing Asset will be transferred upon completion of the Murabaha Contract; or
• Option 2: Authorise Emirates NBD Securities L.L.C. to sell the Financing Asset to a third party on your behalf and transfer the sale proceeds thereof to your Account with Emirates Islamic

You have full liberty to choose any of the above 2 options to complete the trading process.

If you have not chosen any of the above options by the cut-off time, then we will consider that you are appointing Emirates NBD Securities L.L.C as an agent to sell the Certificates owned by you to another party on your behalf and transfer the sale proceeds to your Account with Emirates Islamic.

• A Personal Loan is money you borrow and pay back with interest over multiple years
• However, Personal Finance is a Shariah compliant contract, where the Bank sells an asset at a profit, as Islamic Banks are prohibited from charging interest. So, this product is Usury/Riba free

• Islamic Banks offer liquidity - in a Shariah compliant way by trading Shares, Commodities or Certificates which can help the Customer to settle his outstanding debt with another bank
• However, Conventional Banks buyout the loan without any Shariah arrangement

As per Shariah, it is impermissible to buy a loan at discount .

• Borrower in a Conventional Bank undertakes to pay a penalty in case he delays in settling installments on due dates. These amounts are taken as additional profits for the Bank
• Financee in an Islamic Bank undertakes to pay a penalty which will be donated to charity and the Bank does not benefit from those amounts

• Conventional Bank is a financial body which receives money from the depositors against fixed rate of interest and it offers liquidity to borrowers against interest. And it is governed by conventional banking laws
• Islamic Bank is a financial body which executes commercial contracts like sale & purchase, leasing, or construction and are governed by Islamic banking laws which allow financial bodies to carry on commercial activities for profitable purposes

• As per Loan arrangement, the borrower needs to return money to the exact lender from whom he borrowed
• However, Financing is a commercial contract based on sale & purchase, leasing, or construction
• All banking products offered by Islamic Banks are based on financing

• Borrower is a person (or entity) who borrows money from someone else
• Financee is a person who agrees to settle a deferred price payable upon execution of a sale & purchase, leasing, or construction contract

• Interest is any increment earned over and above the loan amount which is not permissible as per Shariah
• Profit is any additional revenue generated through various trade activities. Earning profit is permissible as per Shariah

Islamic Banks do not earn any interest on their financings, rather they generate profits through entering various commercial activities like sale & purchase, leasing, construction etc.

• Installments paid by a Borrower in a Conventional Bank represents repayment of a previously taken loan
• However, installments paid by the Finance Customer in an Islamic Bank represents payment of the sale price, lease rentals or service charges.