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Top UAE Bank Stops 'Salary in Advance' Service; Will it Hit Ramadan Festivities?

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Staff Writer, TLR

Published on February 22, 2024, 14:05:07

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Banks in Dubai, salary in advance, Ramadan

Dubai Islamic Bank, the largest Shariah-compliant lender in the UAE, has opted to discontinue its popular 'Salary in Advance' service for customers. The decision, as conveyed in a statement, follows a comprehensive assessment of the bank's financial offerings, with an active exploration of alternative solutions underway.

Explaining the rationale behind the move, the Dubai-based bank emphasised the careful consideration and thorough evaluation undertaken regarding its financial product portfolio. While acknowledging the significance of the ‘Salary in Advance’ facility to certain customers, the bank expressed its commitment to finding alternative avenues to support their financial well-being.

Notably, several other local banks also provide similar services, making DIB's 'Salary in Advance' option a popular choice among residents seeking to alleviate financial strains. Many UAE residents rely on this facility during periods of financial difficulty or for urgent personal requirements.

Reaffirming its dedication to offering innovative financial solutions tailored to customers' evolving needs, the bank highlighted its ongoing efforts to assess and align its products and services with strategic objectives and regulatory standards.

The bank expressed appreciation for its customers' understanding during this transition period and pledged to keep them informed of any developments. Despite discontinuing the 'Salary in Advance' service, the bank said it remains focused on delivering optimal service and maintaining transparency with its clientele.

The bank reported exceptional performance in the previous year, achieving its highest profitability in history. Dubai Islamic Bank Group disclosed a net profit of Dh7 billion for 2023, marking a 26 per cent increase compared to the preceding year, primarily attributed to heightened non-funded income and reduced impairment charges.

7 Banks Continue to Offer Advance

Currently, several banks in the UAE offer advance salary service, catering to their customers’ emergency needs such as hospital bills, credit card payments, or unforeseen expenses. The service provides a significant relief for individuals facing urgent financial situations, often preferring it over borrowing from acquaintances.

To access this benefit, bank customers can seamlessly have their salaries credited in advance upon approval. This can be done with just a click through the bank’s portal, ATMs, customer service centre, or by visiting a branch. However, it's essential to note that each bank sets its own conditions and eligibility criteria, which employees should review before applying.

Some banks require customers not to transfer their salary to another bank while utilising the 'Salary in Advance' facility. Yet, others permit it under specific documentation submission. Additionally, some banks offer instant cash through a salary overdraft facility, providing a revolving credit option linked to their salary account.

Banks Currently Providing Advance Salary Services

Abu Dhabi Islamic Bank (ADIB): Customers can access up to 50 per cent of their salary on a Murabaha basis before payday, with competitive profit rates and zero processing fees.

Abu Dhabi Commercial Bank (ADCB): Offers salary advance against a one-time processing fee, providing instant access to cash up to 2.5 times the salary, with documentation required.

Ras Al Khaimah Bank: Provides salary advance at a set cost for registered RAKdirect customers with a monthly salary transfer to their RAKislamic Account.

United Arab Bank: Offers salary advance under the Islamic concept of Qard Al Hasan, with no interest, low fixed monthly fees, and a revolving overdraft facility.

Ajman Bank: Shariah-compliant bank offering temporary salary advance facility for salaried individuals with a minimum salary requirement, subject to terms and conditions.

Sharjah Islamic Bank: Provides salary advance options through digital platforms, ATMs, and service centers, with a processing fee upon availing the service.

Emirates NBD: Offers overdraft facility providing up to twice the salary amount, accessible via various channels with a minimum net income requirement and associated interest charges.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.

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