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Abu Dhabi Islamic Bank Postpones Personal Customer Installments During Ramadan

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Points of Essence:

  • Abu Dhabi Islamic Bank recently announced that it will defer installments for its Murabahah customers as a goodwill gesture to provide them relief in meeting their other liabilities during Ramadhan and Eid al Fitr festivals. A tradition observed since the last 10 years, it is not known whether the other UAE based banks will follow suit.

Abu Dhabi Islamic Bank (ADIB) has confirmed that it will postpone installments for Murabahah customers during the Holy Month of Ramadan, waiving its rights to profits generated through the purchase of a number of its banking services.

The move, which has been designed to help customers save money during a month that may prove one of the most costly this year for many, has been agreed as a goodwill gesture on behalf of the Bank as part of its ongoing Ramadan and Eid Al Fitr celebrations.

The gesture has become an annual tradition for ADIB, which was the first Islamic bank to postpone the payment of Murabahah installments during Ramadan 10 years ago, demonstrating the bank’s focus on innovation and long-term commitment to provide flexibility to customers in helping them to manage their finances and unforeseen expenses.

The postponed installments apply to customers currently paying holding the following ADIB Murabahah-based (i.e. cost plus) products: Liability settlements; Car finance; Educational loans; Travel finance; Shares finance; Boat finance, and; General finance.

In order to qualify, customers must be up-to-date with their payments, have paid more than three previous installments and have a salary-transfer arrangement in place with the bank. The offer is also open to ADIB staff.

Installments will be automatically postponed until October, unless the customer contacts the bank and requests to pay his/her installment as usual in September.

Mr Tirad Mahmood, CEO of ADIB, comments: “One of the key values of Islamic banking is that of partnership. At ADIB we believe in not only offering the best in Sharia-compliant banking, but also in two-way dialogue with our customers.”

“We have listened to our customers and know that September will be an expensive month for many of them, with Ramadan, school fees and the return from holidays, against a backdrop of rising living costs in general. Postponing installments for a month is another way for us to give back to those who have helped make us one of the leading Islamic banks in the region,” he added.



Written by Suapi Shaffaii

September 28, 2008 at 4:24 pm

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