KEY FACTS: Cashback Covered Card (Download)

Thank you for applying for Sharjah Islamic Bank Cashback Covered Card. To ensure transparency regarding the bank offer, please go through and sign the acknowledgment given below. Should you require any further information, please contact our 24-hour Call Centre team on 065999999 or visit our website www.sib.ae.

Type of Covered Card Requested:

· Cashback Titanium Covered Card

Schedule of Charges

1.            Charges are VAT inclusive.                                                                                                                                 

2.            Supplementary card is offered for immediate family members (spouse, parents, children and siblings) and customer can enjoy up to 4 free cards.                                                                 

3.            80% of the Covered card Limit is allowed for cash withdrawal. Cash withdrawal Fees as stipulated in the above Schedule of Charges will apply.

Financial Terms and Required Documents:

The following eligibility criteria as mandated by the UAE Central Bank will be applied while evaluating the applicant’s eligibility for a covered card:

1.            Minimum age of the customer to be 21 years.

2.            Minimum monthly income of the customer to be AED 5,000.

3.            Maximum Debt Service Ratio (total monthly obligations towards financial facilities as a component of monthly income) should not exceed 50% of monthly gross salary (30% for pensioners), 5% of which is related to your minimum Covered Card monthly payment.

Example of Profit Charges

Cover Amount (Card Limit(= 20,000

Monthly Profit rate (A)= 3.49%

Daily Profit rate (B)= A/30

Murabaha Monthly Instalment (Profit) for Jan2023 = Card limit x Number of days in Jan2023 x Daily Profit Rate (B)

Profit Rate for Jan2023 = 20,000 x 31 x (3.49%/30) = 721.27

•             If the cover (investment account balance) is AED 10,000 and you used the AED 10,000 (out of which AED 3,000 is cash withdrawal):

a.            If you pay AED 10,000, the profit will be calculated on AED 3,000.

b.            If you pay less than AED 10,000, the profit will be calculated on the full AED 10,000.

•             If the cover (investment account balance) is AED 10,000 and you used AED 8,000 as retail purchases:

a.            If you pay AED 8,000, you will not pay any profits to the Bank.

b.            If you pay the minimum or up to AED 7,999, (or fail to pay any amount), you will pay to the Bank profits for AED 8,000 = {AED 10,000 -AED 2,000}.

c.             If you fail to pay any amount, you will pay to the Bank profits for

AED 8,000 and Commitment to Donate Amount shall apply.

APR (Annualized Profit Rate)

Annualized Profit Rate= Monthly Profit Rate / 30 x 360

Example: Monthly Profit Rate = 3.49%

Annualized Profit Rate= 3.49/30×360= 41.88%

Minimum Monthly Payment

You must pay the Minimum Payment due by the payment due date each month. Minimum payment is calculated as 5% of the total payment due or AED 100, whichever is higher, and the following amount will be fully added, if applicable:

•             Easy Cash.

•             Balance Transfer.

•             Any other installment.

Please note if the current balance is less than AED 100, it must be paid in full.

1.            It is always advisable to pay an amount more than the minimum due and requested for the monthly payments according to the last account statement issued by the bank in order to replenish your Wakala account (available balance to use) rather than paying the minimum from the amount that only covers the Card fees and charges and a small amount remains as an available balance for use only.

2.            Please ensure that you round up the total dues requested by the bank and pay the exact amount before or on the due date to avoid paying the profit net between the Murabaha and Wakala Profits that is calculated on daily basis until the payment date.

To clear any doubts, the example below illustrates this payment scenario:

If you paid the total amount due on or before the due date, the bank will credit the difference between the Murabaha profits and the Wakala profits as bonus. In this case, you will not pay any profits to the bank.

Warnings

1.            Once the customer activates the Covered Card, the customer shall be liable to make any payments on the card on the date that the bank specifies via SMS or monthly accounts statements. To avoid any doubts regarding payments date, it is advisable to contact the call center upon the card activation to check this information.

2.            In case you choose to make only the minimum payment by the due date, then the bank will keep calculating the profits (net between the Murabaha and Wakala Profits) on daily basis till the full Wakala outstanding amount (Card available balance) is covered which will take you a longer period to pay off your current balance. This includes the new transactions which have been made after the account statement issuance.

3.            Your continuous failure to make payments regularly and on time, will expose you to pay further charges (Commitment to Donate to Charity amount) and that may lead to take legal actions by the bank.

4.            Failure to pay your financing payments may affect your credit rating, which may limit your ability to obtain a financing in your future.

5.            The Bank reserves the right to amend the Covered Card Terms and Conditions, Schedule of Charges and Fees, Tariff Board and other fees payable by the customer  from time to time by providing  sixty (60) days’ notice to the customer on the Customer registered email/SMS on the Customer registered mobile number or any other means decided by SIB, from time to time, in accordance with the Applicable Laws and SIB’s Consumer Banking Terms and Conditions, applicable to the Customer, available on the SIB website. If the bank does not receive any objection from the customer within 60 days from notification date, this will be considered as customers’ consent. However, in case the customer  does not agree to the change made by the bank, the two parties may agree to settle the relevant card liability or shift to another product subject to obtaining the Internal Sharia Supervision Committee (ISSC) approval on any change prior to implementation.

6.            The Bank has the right to cancel or amend the finance approval before executing the finance transaction with a prior notice to the customer

7.            The customer is not permitted to exceed the covered card limit unless the bank charge a monthly profit and/or fees and no additional fees will be incurred.

8.            If the customer does not meet the payments on his/her financing, this may affect his/her credit rating, which may limit his/her ability to obtain financing in the future.

9.            If you choose to waive your right to the Cooling-off Period, you will be bound by the terms and conditions of the Murabaha contract once it is concluded between you and the Bank. Consequently, you will bear all the risks of the item sold, including its price fluctuation of the item sold starting from the contract signing date.

Key Disclosures on using Covered Cards

(Important: must be read carefully and understood)

1.            This Key Facts Statement is not an offer of finance facility. The Bank is not obliged to provide the customer with the Covered Card  described in this Key Facts Statement. The customer will need to apply for the Covered Card and meet the Bank’s credit suitability criteria before we can determine whether you are eligible for this card.

2.            The Key Facts Statement contains information about Covered Card product to help the customer compare and select the most appropriate card type.

3.            To know more about the SIB cards offering please visit www.sib.ae.

4.            The bank is not permitted to charge profit on accrued profit in accordance with the Article (121), Clause 3 in Decretal Federal law No. (14) of 2018, Regarding the Central Bank & Organization of Financial Institutions and Activities.

5.            SIB Covered Card Terms and Conditions shall apply that prohibit using SIB Covered Card for any non-Shari’a complaint products/services as determined by the Internal Shari’a Supervisory Committee of SIB including but not limited to, alcohol, pork products, gambling, tobacco, casinos, bars, etc.

6.            The Bank will share the cardholder’s data and financial status with Al Etihad Credit Bureau as mandated by the UAE Central Bank. Therefore, any delay in paying the instalments will impact your credit rating and your ability to obtain other financing.

7.            Cashback Points are awarded on the card based on the spends made as per the transaction category and awarded on a monthly basis after the issuance of the account statement.

8.            Customer can request a facility of Easy Payment Plan (EPP), Balance Transfer (BT), Easy Cash (EC) and the Bank may process the request based on its policies and customer eligibility. To view the terms and conditions of the associated services card, please visit following links:

Easy Payment Plan (EPP):

https://www.sib.ae/en/EasyPay

https://www.sib.ae/docs/default-source/default-document-library/epp-tc-en.pdf

Easy Cash (EC):

https://www.sib.ae/en/EasyCash

https://www.sib.ae/docs/default-source/default-document-library/ec-tc-en.pdf

Balance Transfer (BT):

https://www.sib.ae/en/BalanceTransfer

https://www.sib.ae/docs/default-source/default-document-library/bc-tc-en.pdf

Delinquency (unsettled dues) on the Covered Card

•  In case of any delinquency on the card (missing due date payment), the Bank at any time deemed necessary and without prior notice has the right to  cover any outstanding dues by freeze /or block credit balances in any of the accounts with the Bank (including any savings accounts) or liquidate any deposits, (investment deposits or fixed deposits), or any other associated account, at any time the Bank deems necessary with or without a Court order to this effect, and the Customer acknowledges that the Bank is permitted to block any amounts relating to payment/settlement of any covered card, even in cases where the Bank implements a block in advance of the amount falling due.

• The Bank has the right to contact you by our Collections Department and remind you of the total dues that you have to cover to avoid further delinquency or affecting your history in AECB (Al Etihad Credit Report).

•  If the customer is a guarantor of another customer, then the bank has the right to collect the installment from the guarantor accounts with Bank in case the guaranteed customer defaults to pay.

•   If the customer/guarantor provide any collateral or post-dated /security cheques or DDA then the bank has the right to repossess the collateral or submit the post-dated/security cheques to collect the payment or follow legal procedure in case of the customer defaults to pay.

•   If the salary is one of the securities required for the card, the customer needs to transfer the salary to the bank as soon as the required card transaction is completed, and in the event of termination of the customer’s services by customer’s employer and transfer of End of Service benefits (EOSB) to the account, or in case of resignation or changing employer, the bank is entitled to block the EOSB and any other amounts available in the account in order to pay any overdue amount (s) of the  card and to settle any installments on its due date, or transfer the EOSB/amounts to pay the installments that have not been settled according to their due dates.

•If the customer is late in paying any installment of the deferred amount on its due date, he/she  is obligated, if the bank requests to donate an amount of AED 236.25 for each unpaid installment due, and this amount is collected directly or added to any subsequent installment of the deferred amount, and is deposited in the charitable account after deducting all actual direct costs of collection and taxes incurred by the bank as a result of the delay in payment, and is disbursed under the supervision of the bank’s internal Sharia Supervisory Committee, and is not included in the bank’s assets or benefited from, and the customer is considered to be a defaulter by defaulting on payment unless he proves otherwise.

Covered Card Cancellation

• Before submitting the cancellation request, you must ensure that the outstanding balance is entirely settled.

• After submitting the cancellation request, you will still be liable for settling any dues that have not been settled or delayed by the merchant or retailer.

• Once the outstanding balance is paid off, please contact our call center to proceed with the cancellation process that may take up to 5 working days.

• In between, you may receive a call from our retention department to understand the reason of cancellation and resolve any issue pertaining to the card. In case you agree to keep the card, the request shall be dropped.

Your obligations to control prevention and the  action to be taken in case you suspect any fraudulent activity

1.            Always keep your card and transactions details safe and never disclose card details (including includes username, passwords, OTP for online transactions) to any third party.

2.            Beware of promotions with large prizes or discounts and contact the Bank for reporting or clarifying any doubt.

3.            In case you receive any SMS of transaction that you have not made it yourself, please block the card immediately via our online or mobile banking application or contact our call center. Moreover, you would need to fill in a dispute form at our branch to allow us to investigate from our side.

Sharia Structure:

Covered Card is based on a combined contract of Murabaha and Investment Wakala 

Murabaha contract Structure:

A Sharia compliant contract between you and the Banks, under which customer requests the Bank to purchase the Asset and promises to buy that Asset after the Bank has possessed it on a deferred payments over 10 years. Upon the completion of the Asset sale to the customer, the Customer will sell the Asset, directly or through a third party and the Sale Proceeds shall be deposited into the Customer’s Wakala Investment Account which was opened for this purpose. To continue utilizing the card, it must be renewed after a period of ten (10) years.

Wakala Structure:  

A Sharia compliant contract between you and the Bank, under which customer (Principle) appoints the Bank (Agent) to invest the Sale Proceeds in the field of transactions and investment activities. The Bank declares that the expected profit rate as agreed by the customer at the time of applying for the card.

Important terms related to Covered Cards:

Card Usage Account  means the SIB Wakala investment account opened by the Cardholder with SIB where the Card Limit is deposited and used for entering all credits and debits received or incurred by the Cardholder and/or the Supplementary Cardholder (if any) or any unutilized amount.

Murabaha Contract means the National Bonds/Commodity Murabaha Contract embedded as part of the Covered Card application between the Bank and the Card Holder under which the Bank has sold to the Card Holder, for the Sale Price, an identified and specific number of National Bonds/Commodity.

Murabaha Profit means the monthly installment due that is supposed to be paid by the Card Holder over the period of the Murabaha Contract.

This installment is equal to:

Murabaha Principal amount (Covered Card limit) x Murabaha Profit Ratex 360 / 12 x number of days in a month, which appears as a  debit value  in the covered card monthly account statement.

Net Amount Due Charged Profit means the net amount which represents the difference between the Murabaha and Wakala profit.

Wakala Investment Account means the Wakala Investment Account opened with the bank for the card holder and which the sale proceeds of the bonds/commodity purchased under Murabaha will be deposited in, where its balance represents the cover to use the covered card.

Wakala Profit means the profit generated to the customer from its Wakala Investment Account if there was a balance in the account, which will appear on the customer’s account statement as  credit value , and is calculated, on monthly basis, as:

Wakala unutilized balance x Wakala expected Profit Rate x 360 / 12 x no of days in a month. The amount of this profit is variable based on the unutilized Balance in the Wakala Investment Account and shown as credit value in customer statement.

Bonus means the discretionary rebate given by the Bank as result of paying the full outstanding as requested in the Statement of account issued by the Bank on monthly basis.

Cooling-off Period

Once the customer signs the financing contract, you will be bound by its terms and conditions, however in accordance with the Consumer Protection Regulation and Standards, you have the right to a cooling-off period option which gives you the right to cancel the financing contract within five (5) complete business days starting immediately after signing the financing contract (the “Cooling-Off Period”). However, you may choose to waive your right to the Cooling-Off Period.

Alternatives to Covered Cards:

There are other products offered by the Bank that may suit your needs, however they do not have the benefits of Covered Card.

Debit Card:

You can make purchases using your Debit Card that is linked to your current/saving account, however the Covered Card usually allows you to make purchases with a higher limit than the available funds in the current/saving account. You will enjoy a free payment/settlement period up to 17 days from the account statement issuance date which is known by the “Due date”. Also there is a loyalty program available on purchases, where you can earn points for your purchases.

Personal Finance:

This product was designed to meet your day to day needs by offering sharia compliant facilities on the medium and long term with a higher amount than the Covered Card limit. For daily or short term needs, a Covered Card is considered a more convenient option and recommended by the Bank.

Key Requirements, Limitations, Obligations and Risks

For a complete list of SIB Covered Card Schedule of Charges and current detailed Terms and Conditions,  please visit  https://www.sib.ae/en/tariff

Promotional Communication Channels:

I agree to receive promotional communications for products marketing:

Calls:  Yes (  )      No (  )

SMS:   Yes (  )      No (  )

Email: Yes (  )      No (  )

How to File a complaint:

•             In any branch.

•             Your dedicated relationship manager (if available).

•             Phone Banking: +97165999999.

•             SIB Website.

•             Internet and Mobile Banking.

•             By Post: P.O.Box 4, Sharjah, UAE.

Application Processing and Approval:

I acknowledge that:

•             I have read and understood the above information for the selected Cashback Covered Card that includes the product details, Product features, Cashback offer, payment terms and documentation requirements.

•             The information and documents enclosed with the application form and the affordability assessment form are correct. I agree that these will become part of the Bank's records and will not be returned in the event of the application being rejected.

•             Sharjah Islamic Bank is entitled, at its sole discretion, to accept or reject the application of the Cashback Covered Card.

•             In case the application is approved, customer card will be issued and delivered to customer within 3 working days

By signing the acknowledgment form, I confirm I have received the Key Facts Statement of this product and confirm that I read, understood and signed it and agreed to abide by the terms and conditions as set out on the application form for Sharjah Islamic Bank Covered Card.

  Name of applicant:

.................................................................................

•             Signature of Applicant:                                           Date:

This Product has been approved by Internal Sharia’a committee based on the Islamic Rules of Murabaha and Wakala Concepts. and upon  redeeming the proceeds of the Murabaha and depositing the same into the Wakala Investment account the Cashback Covered Card shall be issued