Are you facing an emergency or a temporary lack of liquidity? Banks in the United Arab Emirates are there to help, for a fee.
While some companies offer payday advances to employees going on vacation or in emergency situations, a payday loan facility is available from some banks in the United Arab Emirates.
Banks such as Dubai Islamic Bank and ADCB (Islamic Banking) offer this facility to clients whose salaries are credited regularly to the bank.
Payday loans are common in Europe, America and Africa, and now banks in UAE are offering them as well.
“I regularly receive text messages asking me if I am interested in withdrawing my salary in advance from my bank account with a note indicating that the said conditions apply. As I did not know the terms and conditions, I did not opt for it, but some of my friends took advantage of this facility, ”said a client of the Islamic bank, whose salary is regularly credited to the account.
Dubai Islamic Bank has a system whereby clients whose salaries are transferred to the bank can receive a payday advance and withdraw up to 90 percent of their monthly take-home pay.
DIB will invoice 295 Dh per transaction for an amount of salary advance of 1000 Dh to 13 500 Dh and for the advance of salary of 13 501 Dh to 30 000 Dh, a service charge of 500 Dh per transaction will be deducted.
The maximum salary advance will be approximately 90 percent of take-home pay, after deducting all other payroll account obligations. The total amount of Al Islami’s anticipated salary will be recovered upon receipt of the client’s salary on the checking account provided that it does not exceed the last day of the same month or the first day of the following month.
“Even if the payday advance is available every month, the salaried customers who take advantage of it must return the full amount at the end of the month”, indicates the official page of the bank.
In the case of ADCB (Islamic Banking), members of the bank’s Islamic Privilege Club are entitled to a salary advance of up to Dh 20,000.
The bank offers a payday advance facility to anyone with a current account and a minimum salary of 12,000 Dh per month. Dh 100 is charged for opening the payday advance facility and Dh 100 per year for the renewal of the facility, said an ADCB customer service agent.
RAKBank also offers payday advances for clients who have a minimum salary of 5,000 Dh and the cost is 150 Dh plus prevailing interest rates, with a minimum charge of 50 Dh.
The advance is reimbursed on the salary for the following month credited directly to the account. It is open to anyone whose salary is transferred directly to RAK Bank, but the amount will be subject to credit approval and a fee will be charged in accordance with the bank’s service and price guide.
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