Emirates Islamic bank on Monday announced that it had launched “Financing Against Shares.”
With the launch of the new product, customers, who invest in Shari’a compliant equities through Emirates Islamic Financial Brokerage (EIFB), or any other financial brokerage company in the UAE, can access financing secured against their equity investments with easy repayment plans. The repayments are either on a monthly or quarterly basis, with principal recovery at the maturity of the finance.
“As a leading retail Islamic bank in the UAE, Emirates Islamic is happy to launch the ‘Financing Against Shares’ product which highlights our role as an innovative, customer-oriented and customer-friendly one-stop financial solution provider,” said Faisal Aqil, Deputy CEO, Consumer Wealth Management, Emirates Islamic. “We are optimistic that our unique new product will benefit our customers to better manage their finances and at the same time make the best of the opportunities available in the share market.”
“Financing Against Shares” enables customers to secure finance of up to 50 per cent of the value of their Shari’a compliant shares portfolio, with profit rates starting from 3.5 per cent flat per annum. Processing and Takaful fees are nominal and customers have the flexibility to reinvest the liquidity or utilise it as per their requirement. The product allows trading of under lien shares to maximise the portfolio’s performance, and customers have access to free current or savings account without monthly minimum balance.
In order to be eligible for the scheme, customers must have a minimum investment of Dh200,000.