First Abu Dhabi Bank (FAB) offers varied personal banking solutions to retail as well as corporate customers. With this bank, you can get attractive personal loans to fulfil all your financial requirements quickly and without much documentation.
Notably, FAB personal loans in UAE have a flexible repayment tenure so that the repayment process does not dent your budget. However, the bank still has various additional provisions to make repayments easier for you, with one such facility being loan deferment. Using this option, you can postpone the repayment of FAB loans for a predetermined period.
To understand how the FAB loan deferment works and what is the FAB loan deferment process that you must complete if you need to defer your loan repayments, let’s go through the article below.
FAB Loan EMI Deferment – An Overview
First Abu Dhabi Bank allows eligible borrowers to defer or postpone the EMIs of specified loans. The types of loans for which payments can be deferred are personal loans, auto loans, and mortgage loans. Moreover, you can also seek deferral for your credit card payments if you have a FAB bank account or an existing loan with the bank.
If you are under any financial duress, you can request the bank to postpone your EMI payments. The bank will take into account your request and, depending on your eligibility, defer the EMIs to help you manage your finances in the short run.
Besides the regular deferment, FAB has also introduced the loan deferment option for borrowers whose finances have been impacted due to COVID-19 to help customers with financial relief during the pandemic.
How Does the FAB Personal Loan Deferment Work?
As we saw earlier, the bank offers the benefits of the deferment facility only for eligible borrowers. For instance, if you are seeking loan deferment due to COVID-19 impact, you may be asked to present proof related to a COVID-19 positive test, reduction in salary, layoff, and so forth.
Once you fulfil the eligibility parameters, you can make a request to the bank to defer the loan EMIs. This can be done by submitting the specified documents for the same along with the request. The bank will analyse your request and assess the submitted documents.
Based on your application and eligibility, you may be allowed a deferment of up to three months where you don’t have to pay the loan EMIs. However, once the deferment period is over, the EMIs will resume.
How to Initiate the FAB Loan Deferment Process?
If you are an eligible borrower, you can make a deferment request to the bank through its official mobile application or by dropping an email at email@example.com.
Keep in mind that you would be required to upload the required documents if you are applying through the mobile app. In case you plan to send an email, you can attach the documents in the mail itself. Additionally, mention the tenure for which you are seeking a deferment.
If you have suffered financial distress due to the pandemic and want to apply for a deferment, you would be able to do so in any of the following scenarios –
You tested COVID positive and have a medical certificate, a SEHA notification, or a notification from a Government-recognised medical facility to support the diagnosis
Your salary or income got reduced by 20% or more
You have been put on unpaid leave by your employer
You have lost your job or business
You are a landlord or investor with mortgages and have recorded a reduction in the rental income
Please note that even if you meet the aforementioned criteria, you would have to provide the supporting documents to make your FAB loan deferment request.
Features & Benefits of FAB Personal Loan Deferment in UAE
Here are some of the major features and benefits of the FAB loan deferment –
The deferment is allowed for individual borrowers as well as SME borrowers
The deferment is allowed for up to three months for borrowers impacted by COVID-19
Deferment is allowed if you have duly paid the previous loan EMIs and your account is not a delinquent one
Even during the deferral period, you can apply for new personal loans at 3.99% variable rate of interest (per annum)
The bank would notify you through an SMS about the deferral of your loan. This message would also state the number of months for which you have earned a deferment.
Deferment due to the impact of COVID-19 is allowed for free
Fees & Charges for FAB Loan Deferment
As mentioned earlier, your FAB loan deferment would be done for free if you have suffered a financial crisis due to COVID-19 and are seeking a deferment due to the same. However, if you are seeking a deferment in the normal course, you would have to pay a fee of AED 105 per deferment.
How Does the FAB Personal Loan Deferment Affect your Credit Score?
Deferments without approvals are considered missed payments. In this case, the bank informs the AECB (the agency which calculates your credit score) of the same, which leads to a reduction of your credit score.
However, if you apply for a FAB loan deferment and the bank approves the same, the credit score is not hampered. Not paying the EMI during the deferment period is not counted as missed payments, which means that your credit score remains intact.
FAB loans are excellent options if you need financing to fulfil your requirements. However, in case you face any temporary difficulty in repaying the loan, you can apply for FAB loan deferment and have your EMIs deferred for up to 3 months.
The FAB loan deferment process is fairly straightforward, as you can submit your request using the FAB mobile app or via email at firstname.lastname@example.org. While a fee would be charged for loan deferrals in regular cases, those related to COVID-19 impact would be done for free.