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Commercial Vehicles

RAKBiz-equip, the finance you need to equip your business for growth

Commercial Vehicles Finance – Provide your business with a world-class fleet

All the types of vehicles / equipment to be financed under the Finance have to be part of the Bank’s approved list of vehicles / manufacturer /dealers.
The Bank will pay the dealer directly.
Last Monthly Commitment amount may vary depending on moratorium period, changes in floating rate indices, and payment delays.
Finance tenor may vary post sanction depending on Monthly Commitment deferrals sought from the bank, payment delays
and pricing variation.
If you fail to make any payment due under the Finance or otherwise breach our terms, we reserve the right to repossess the asset(s), and liquidate / sell the same to settle the outstanding amount.
The Bank may reject requests for Monthly Commitment deferral if payments are irregular or if there are cheque / direct debit system (DDS) returns in the last 12 months or if the request does not meet the Bank’s internal risk policy requirements.

You need to:

Pay all Monthly Commitment and other amounts due on the due dates without delay;
Review this document and all other terms & conditions set out in the facility documents / application form in detail;
Regularly check our website www.rakbank.ae for updates;
Notify the Bank in writing if there is a change in your business income details, contact details, postal or location address, financial details or any other material information as declared in the facility documents / application form or otherwise conveyed to the Bank;
Notify the Bank in writing prior to making any changes to ownership or management of the Company as was declared during the application process and seek consent; and
Notify the Bank in writing if you wish to prepay your Finance prior to its maturity.

The Bank may amend the features, fees, charges, terms & conditions of the Finance on 60 days’ notice to you in advance.
The Bank may amend the profit rates for the Finance on 30 days’ notice to you in advance.

Warnings

An approval for the Finance once sanctioned is only valid for 90 days from the date of approval, and the Finance disbursal must be completed before that so as not to lose time, failing which re-approvals need to be sought internally. Extension beyond 90 days is at the Bank’s discretion and subject to internal approvals.
If you pay off the Finance prior to the due date, you will pay prepayment charges at the rates described in the Service & Price Guide.
If you are late in payment or fail to make a payment on the due date, you will pay donation amount charges at the rates described in the Service & Price Guide; and profit will continue to apply on the aggregate finance outstanding (which will include the unpaid profit posted to the finance account).
If you fail to make a payment, or otherwise breach the Finance terms, this will be considered a default and the Bank will be entitled, among other things, to:
- (a) Charge a donation amount as defined in the Offer Letter for non-compliance to finance sanction terms;
- (b) Cancel the Finance and demand and demand full payment immediately;
- (c) Report the default to the appropriate regulatory authorities including the UAE Central Bank and Al Etihad Credit Bureau and credit rating agencies, which will affect your credit rating;
- (d) Bring legal proceedings against you.