Dubai Islamic Home Finance
Owning a house has always been your dream, now Dubai Islamic Bank Home Finance will make that dream come true, along with a clear conscience as no Riba is involved! Using the Shirkat-ul-melk cum Ijarah model, you can own a home quickly, conveniently and in a Shari’a compliant manner.”
How Does Shirkat-ul-melk cum Ijara Work?
- As per pre-agreed ratios the Bank and Customer will establish a partnership in a property, the Musharakah Agreement shall be signed by both parties.
- After physical/constructive possession by the Bank, Bank leases its share in the property to the customer through entering into an Ijara agreement, clearly mentioning the rentals for first lease period.
- In case the customer wishes to purchase Bank’s share in the property before completion of an agreed lease period, the bank may sell its ownership share in the property to the customer at a specified price.
- At maturity of an agreed lease period, bank sells its ownership share in the property to the customer at a specified price through a separate sale/purchase agreement or transfers the ownership by executing a gift deed at its discretion.
- Home Purchase
- Home Renovation
- Purchase of Undivided share of Property Mortgaged by other banks (Balance Transfer)
- Construction Finance
What makes Dubai Islamic Home Finance the Best Choice
There are so many reasons that make Dubai Islamic Home Finance the right choice!
- Shari’a Compliant
- Financing Up to Rs. 75 million*
- Swift application processing time
- Affordable and competitive monthly rental
- Financing up to 70% of your property value
- Early & Partial settlement options*
- Tenor rescheduling option*
- Complimentary Property Takaful
*Terms & conditions Apply
Pricing Mechanism / Profit Rate Criteria
Dubai Islamic Home Finance is a variable rate product i.e. the rental rate is linked with revisable Karachi Interbank Offered Rate (KIBOR) which shall be revised after every six or twelve months from the date of contract booking depending upon your chosen renewal option.
Applicable Profit Rate = Relevant KIBOR + Margin The prominent features of the Pricing Mechanism of the Dubai Islamic Home Finance are further explained in detail as follows:
- The variable rental is based on a benchmark KIBOR + a predefined margin.
- The variable rental and the rental payment schedule, which will be offered to you at the time of contract booking, shall be valid for six or twelve months only depending upon your chosen renewal option.
- The variable rental is (annually or semi-annually) renewable. It is renewed based on the prevailing KIBOR rates at the time of renewal. In other words the rental rate is linked with revisable KIBOR rate which shall be revised after every six or twelve months from the date of execution of the Payment Agreement.
- The predefined Bank’s margin remains constant throughout the financing period. However the KIBOR may increase or decrease based on market rate movement which can change the rental amount. To further explain this point a hypothetical illustration is given below using 12 month KIBOR as benchmark for your understanding.
Hypothetical and Approximate Rental calculations for illustrative purposes only
|Year #||Financing Amount||Financing Tenure||KIBOR||Bank’s Margin||Profit Rate||Monthly Rental|
* The arbitrary 12 month KIBOR and rate of Bank’s margin is taken as assumption.
** In year 2, the KIBOR is increased by 3% from year 1 and Bank’s margin remains constant.
*** In year 3, the KIBOR is decreased by 5% from year 2 and Bank’s margin remains constant.
Installment Payment Frequency and Mode
DIBPL Home Finance customers can make their “monthly rental payments” through any of the following modes/channels as per their convenience.
Over the Counter
DIBPL Home Finance customers can deposit their monthly payments/rentals “over the counter” at any DIBPL branch through cash or cheque in a dedicated account. Direct Debit Instructions: DIBPL Branch Banking customers can make their monthly rental payments by simply giving direct debit instructions from their account maintained at any DIBPL branch.
DIBPL Branch Banking customers can easily make their monthly rental payments by using Dubai Islamic Internet Banking facility to internally transfer the rental amount from their personal account to the dedicated account.
Customer Eligibility Criteria (Pakistani Residents)
For Salaried Individuals:
Minimum Age: 25 Years
Maximum Age: 60 Years
Minimum monthly net income of Rs.40,000/-
For Self Employed Businessmen & Self Employed Professional:
Minimum Age: 25 Years
Maximum Age: 65 Years
Minimum monthly net income of Rs.50,000/-
Property Eligibility Criteria
The qualifying property must be located in the following Cities of Pakistan:
The minimum value of the property must be greater than Rs.2,000,000/-
Customer Eligibility Criteria (Overseas Pakistani – UAE only)
Pakistani National residing in UAE
Minimum monthly net income of AED.27,000/-.
Salaried individuals Only
- Copy of primary applicant’s CNIC
- Copy of Co-partner’s CNIC, if necessary
- 2 Passport Size Photographs
- Tax Returns
- Copy of Utility Bill
- Professional Degree (for self-employed professionals only)
- Salary Certificate/Proof of Profession
- Latest Salary Slip
- Bank statement of the last 12 months & Bank Certificate
Who can apply for Home Finance facility?
- Salaried Individual
- Self Employed Professional (SEP)
- Self Employed Businessman (SEB)
In how many cities is Home Finance Facility available?
What is the minimum and maximum financing limit available for Home Finance?
- Home Purchase Rs. 500k – Rs. 75 Million
- Home Renovation Rs. 500k – Rs. 10 Million
- Balance Transfer Rs. 500k – Rs. 10 Million
- Construction Finance : Rs. 500k – Rs. 50 Million
Who can be Co-partner?
Only spouse and immediate blood relatives (Son, Father, brother and mother) except daughter & sister, can be co-partners.
Will my spouse's income also be considered in calculating the Finance Burden?
Yes, your spouse’s income (Wife or Husband) can be clubbed for finance burden calculation.
Can a commercial property be financed or not?
As per State Bank’s Regulations for Consumer Financing, only residential property is allowed to be financed under Home Finance product.
Contact Details of the Concerned Personnel/Representatives
To know more about the Dubai Islamic Business Finance Products, please call DIBPL Phone Banking at 111-786-DIB (342). You may also visit or contact our dedicated personnel/representatives at the following address and contact numbers:
City : Karachi
Dir Tel : 021-35203674
Address: : Karim Chambers CL5, 6/2 Civil Lines Karachi
City : Lahore
Dir Tel : 042-5788836
Address : Gulberg Branch 10K Main Boulevard Gulberg II Lahore.
City : Faisalabad
Dir Tel : 041-8555471
Address : 575-B, Millat Plaza, People’s Colony, Satiana Road, Faisalabad
City : Rawalpindi/Islamabad
Dir Tel : 051-4852081
Address : 67A Satelitte Town Murree Road Rehmanabad.
For more details, visit our nearest Sales & Service Centre or Branch or contact at 111-786-342 / email firstname.lastname@example.org