Dubai Islamic Bank is a reputed name among institutions providing Islamic financing options in the UAE. On top of that, the bank also offers the Dubai Islamic Bank loan deferment facility to its customers who cannot make loan payments due to a challenging financial situation in their lives.
With this loan deferment option, you can easily postpone instalment payments. As a borrower, you wouldn’t need to worry about your credit score when you avail of this facility.
Additionally, Dubai Islamic Bank also introduced a special loan deferment program for customers affected by the pandemic. To know more about the features and terms of both standard and pandemic-related Dubai Islamic Bank loan deferment process, let’s go through the article below.
Initiating the DIB Loan Deferment Process
You can connect with the bank and request loan deferment to have the process initiated. In case you are seeking deferment due to an adverse situation caused by the pandemic, you can obtain a form for the same and submit it to the bank. This form for the Dubai Islamic Bank loan deferment would require personal information such as your name, customer ID, registered mobile number, and registered email address. Moreover, you would have to state the reason for applying for loan deferment and select the relevant finance option in product types.
Your application for deferring your personal loan in UAE or any other financing product must be supported by relevant documents. For instance, if you opt for loan deferment with Dubai Islamic Bank due to a salary reduction, you must submit an email or letter from the employer indicating the reason and period of leave or salary reduction.
You can also apply for loan deferment for any other reason besides the impact of the pandemic. Dubai Islamic Bank offers loan deferment for free for 1 month in this case.
Once you have filled out the application form and submitted it to the bank along with the supporting documents, the bank will review the application and proceed accordingly.
Dubai Islamic Bank Loan EMI deferment
Loan EMI deferment is similar to the loan deferment here. With a loan deferment request, you place a request for the deferment of EMIs only, which can provide you with some time to manage your finances without the burden of the loan for the time being.
How Does the Dubai Islamic Bank (DIB) Loan Deferment Work?
When you apply for loan deferment with Dubai Islamic Bank, you agree to put that payment on hold for a later date. However, you must remember that loan deferment does not absolve you from making the payment for the said month – it just lets you skip the payment until you have the financial capacity to do so.
When you apply for loan deferment with Dubai Islamic Bank, you should ensure that you clearly understand the terms and conditions, particularly regarding the start and end dates of the deferred period. In most cases, the bank offers 1 free deferment and charges fees on additional deferments. Depending on your financial situation, you may request the bank to extend the deferral period. The bank offers up to 3 months in deferment if you have sought deferment due to the pandemic.
Features & Benefits of Dubai Islamic Bank Personal Loan Deferment in UAE
Listed below are the primary features and benefits of Dubai Islamic Bank loan deferment –
This deferment helps you fight the stress of making regular payments towards your loan by giving you more time to improve your financial condition
Loan deferment periods offer you more time to realign your finances due to being longer than grace periods
Dubai Islamic Bank loan deferment lets you protect your credit score, which wouldn’t be the case when you delay or miss payments without getting approval from the bank
You can get deferment for auto finance, home finance, and personal finance if you are facing any issues related to COVID-19. However, general deferments are available only for Dubai Islamic Bank personal loans and auto loans.
Fees & Charges for Dubai Islamic Bank Loan Deferment
Dubai Islamic Bank charges AED 105 as a fee for each instalment deferment. However, for pandemic-related deferments, no fee would apply.
How Does Dubai Islamic Bank Personal Loan Deferment Affect Your Credit Score?
Your credit score is not impacted if you apply for Dubai Islamic personal loan deferment option. However, you should remember that your credit score wouldn't be affected as long as you don't miss or skip any instalment payments without prior information or approval from the bank.
Dubai Islamic Bank doesn’t report approved deferred personal loans as missed or skipped payments to the al etihad credit bureau (AECB). Thus, there is no negative impact on your credit score, as the deferments will be reported the same which will be visible to other lenders if you apply for more loans in the future.
With that said, you should not skip payments until you have received a letter of approval from the bank.
Dubai Islamic Bank loan deferment facility can be extremely beneficial in difficult times when you are unable to repay loan instalments. With this facility, you can defer some of your instalments and pay them later.
In the meantime, you can manage your finances without facing the stress of the loan. Similarly, you won’t need to worry about your credit score, as the loan deferments don’t impact your credit score negatively.