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Abu Dhabi Islamic Bank (ADIB) is offering a six-month break on repayment installments on personal and vehicle financing in the event of loss of employment to ease the budren on customers as they transition between jobs.
The scheme, launched this week, is open to all ADIB customers and comes at no extra charge.
ADIB will also permit customers to keep their bank accounts open after redundancy so they can receive full end-of-service benefits, rather than apply the common practice of blocking it.
“We are giving our customers protection and peace of mind, so that in uncertain periods during a transition between jobs,” said Philip King, head of retail banking in ADIB.
“Customers don’t have to deal with additional stress of keeping up with their finance payments and can trust ADIB to continue to support them,” said King.
“We want to be the main partner for our customers and work with them in challenging periods. This is a way for us to give back to those who have helped make us one of the leading banks in the country,” said Philip King.
To qualify, customers will need to demonstrate proof of job loss and a dedicated ADIB team will work closely with them to restructure their finance and defer payments.
The offer is applicable to finance which has been provided on the basis of the Shariah-compliant Murabaha model, which offers a number of advantages.
Such financing has a defined use and the profit amount to be paid by the customer is fixed for the entire period at the beginning of the term that does not increase even if the financing term is subsequently increased.
There are no late payment charges and no compounding of profit.
Also, loyal ADIB customers and customers facing personal difficulties are offered discount on the Murabaha profit when settling these financings early.
ADIB is the first bank in the UAE to offer free job loss cover, reflecting the bank’s continuing efforts to give back to loyal customers and putting its Shariah inspired values of ‘mutual benefit’ into practice.