Frequently Asked Questions
Personal Finance
1. What is Personal Finance?
Personal Finance is a Sharia compliant finance facility granted to individuals and is based on the Salam structure. This finance is provided to salaried individuals whose salaries are credited to RAKBANK. The maximum amount granted is based on the salary and ranges from 15-20 times the salary. The finance is provided for personal use and is to be repaid by deductions from the salary of the customer.
2. What is Salam?
Personal Finance is based on the Salam structure. As per the Salam structure, the Bank pays a purchase price to the customer for an upfront purchase of a fungible commodity which will be delivered on a deferred basis by the customer. The commodity that is to be delivered to the Bank will be purchased by customer through a commodity broker and the Bank in turn, will assign another commodity broker to sell the commodity.
3. How will I organize the commodity on a monthly basis?
The Bank will act as your agent, and based on your instructions, the commodity broker will be requested to sell the required commodities on a monthly basis. The pre-agreed cost of the commodity will be deducted from your account and paid to the broker
4. What will the Bank do with the commodity?
The Bank will instruct its brokers to sell the commodity and credit the accounts of the Bank.
5. What is the commodity that I should arrange to provide on a monthly basis?
Whilst applying for Personal Finance, the Bank representative will guide you with details of commodities.
6. Is salary transfer to RAKBANK mandatory?
Yes.
7. What is the minimum age requirement to apply for the finance?
The minimum age requirements for UAE nationals are 20 years and 6 months, and 21 years for expatriates.
8. What is the maximum permitted age on maturity of the agreed term?
UAE Nationals: 65 years or retirement age, whichever is earlier
Expatriates: 60 years or retirement age, whichever is earlier.
9. Is there a Takaful cover available on Personal Finance?
Takaful is available at a nominal cost. This is to protect your family in event of any unforeseen circumstances such as death, permanent disability.
Terms and conditions of the bank apply and will be shared with you at the time of your application.
10. I have just joined my company. Am I eligible for Personal Finance?
Yes, subject to a confirmation of your employment by your employer and subject to the Bank's approval of your request for finance.