Dubai Islamic Bank Commercial Property Finance

Dubai Islamic Bank (DIB) is a leading financial institution widely acclaimed as the first bank in the world to incorporate Islamic principles into its banking operations. Over the years, DIB has expanded its product offerings to cater to its diverse customers, providing a comprehensive range of financial services that adhere to Shariah-compliant practices.

Among the various financial products DIB offers, home finance has emerged as a top-notch choice for customers in the UAE, thanks to its competitive rates, flexible terms, and adherence to Islamic finance principles.

This article will delve into one of DIB's premier offerings, called DIB Commercial Property Finance. This financial product is designed to cater to the specific needs of businesses and investors looking to acquire or develop commercial properties in the UAE.

We will explore the key features and benefits of this offering, including its eligibility criteria, financing structure, and application process, to provide a comprehensive understanding of how DIB Commercial Property Finance can contribute to the growth and success of businesses and investors in the UAE's dynamic real estate market.

Features of DIB Commercial Property Finance

Some of the key features of DIB Commercial Property Finance are listed below –

• Maximum finance amount – Up to 70% of the value of the property
• Maximum finance tenure – Up to 15 years
• Use the finance proceeds for ready office & retail space in UAE or industrial real estate, like warehouses and lands.
• Additionally, the finance amount can be used to purchase the properties bought for the purpose of investments or any other commercial real estate.
• Financing can be extended on the basis of returns generated by the property.
• For ready-made properties, DIB uses the Ijarah method for financing purposes. Ijarah is a lease agreement offering a range of down payment amounts, tenures, and variable interest rate choices, in which the bank leases the property to you in exchange for a variable rental payment over a predetermined duration.

After the completion of all payments and documentation in accordance with Sharia principles, the property's title would be transferred to you. Throughout the financing period, the property will be owned by the bank but remain registered under the name of the customer. Nevertheless, the property will be mortgaged with the land department in favour of Dubai Islamic Bank as a security.

• The profit rate for DIB Commercial Property Finance starts at 3.15% per annum and can go up to 9% per annum, based on the product, the classification of the property, and the financing amount.
• To obtain this DIB mortgage loan, having a life and property takaful is mandatory. 

Documents Required for DIB Commercial Property Finance

For DIB Commercial Property Finance, the specific documents required may vary depending on your circumstances and the property in question.

However, some common documents that you may be asked to provide include -

• Completed application form
• Passport copy (with visa page for expatriates)
• Emirates ID copy (for UAE residents)
• Proof of income
  • Salary certificate or recent payslips (for salaried individuals)
  • Bank statements (usually for the last 6 months)
  • Financial statements and trade license (for self-employed individuals or business owners)
• Property-related documents
  • Sales and purchase agreement
  • Title deed of the property
  • Property valuation report
  • Credit report from AECB

Please note that this is not an exhaustive list. Additional documents may be requested by Dubai Islamic Bank based on your specific situation or the bank's internal policies. It is recommended to contact the bank directly for a complete list of required documents and to discuss your specific requirements.

DIB Commercial Property Finance Interest Rates

Take a look at the pointers below to know how the profit rates on DIB Commercial Property Finance work -

• Currently, profit rates on DIB Commercial Property Finance start from 3.15% per annum and go up to 9%, depending on the product.
• Two types of interest rates are available for DIB Commercial Property Finance – Fixed Rate and Variable Rate.
• Under the fixed rate, the profit rate shall remain fixed for the entire financing period.
• If you opt for the Introductory Fixed Rate, your rate will remain fixed for 1, 2, 3, 4, or 5 years, based on your chosen fixed-term duration. You can select any EIBOR frequency with a 3, 6, or 12-month review period. An additional 10 bps or 20 bps will be added to your margin if you choose a 6 or 12-month review period.
• Your finance facility will have a minimum floor rate set, below which your rate will not decrease. This minimum rate is subject to change and depends on the specific product selected.
• If you select a variable rate linked to the 3, 6, or 12-month EIBOR with a fixed margin for the duration of the loan, your rate will be reviewed every 3, 6, or 12 months as per your choice. The rate will be set at the fixed margin plus the 3, 6, or 12-month EIBOR. Note that the EIBOR fixed for the period is determined one month prior to the next lease period.

Annualised Percentage Rate (APR)

APR, or Annual Percentage Rate, represents the total cost of home financing from DIB over one year. It is an effective method to calculate financing costs since it considers all associated expenses (including additional charges such as due diligence and documentation fees) as well as property-related costs. Annualised percentage rate on DIB home loans starts from 3.79% and goes up to 10.09%.

Fees and Charges of DIB Commercial Property Finance

Refer to the table given below to know about the fees and charges associated with DIB Commercial Property Finance –

Aspect	Fee and Charges
Early settlement charges (Ijara)	1.05% of the outstanding amount or AED 10,500, whichever is lower
Partial settlement charges (Ijara)	1.05% of the outstanding amount or AED 10,500, whichever is lower
Processing, due diligence, and documentation fee for commercial or non-residential	1.05% of finance value to be collected in full at the acceptance stage Minimum amount – AED 5,250 Maximum amount –  No limit Maximum amount for staff – AED 3,675 50% discount for Wajaha customers
Pre-approval fee	AED 1,575 (needs to be adjusted against the total processing due diligence and documentation fee)
Declined charges	AED 1,075 of processing due diligence and documentation fee to be retained and refunded
Cancellation of the request before approval	AED 1,075 of due diligence and documentation fee to be retained and refunded for Ijara
Cancellation by the customer after approval	No refund
Evaluation fees	AED 2,500 (as charged by the evaluation agent)
Urgent transfer processing request	AED 3,150 (at acceptance)
Documents review fee by an external evaluation company	AED 1,000 for the first submission AED 500 for re-submission
Addition or deletion of applicants’ name	AED 2,625
Increase or decrease in payment tenure for Ijara	AED 1,050
Fees Associated with Issuance of Letter
Liability certificate (physical delivery or electronic)	AED 89.25
Clearance letter	AED 99.75
Copy of statement of account	AED 105
Sublease approval letter	AED 94.50
NOC request	AED 157.50
Copy of other documents	AED 105
Other letters or documents upon customer request	AED 94.50
Charges Related to Bank
Change in bank account (initiated by the customer)	AED 105
Payment instrument dishonoured	AED 105 per instance
Permanent change in instrument of payment	AED 262.50 for reach request with no fee for the first instance
Change in rental recovery date	AED  262.50 per instance
Temporary change in payment mode for up to 3 months	AED 262.50 per instance
Temporary change in payment mode for 4 to 6 months	AED 262.50 per instance
EMI Deferment processing fee (Ijara)	AED 105
Managers' cheque cancellation (New Origination Only)	AED 52.50

Dubai Islamic Bank Home Loan Calculator

The DIB Home Loan Calculator is an online tool designed to help you, as a potential borrower, estimate your monthly repayments with a home financing plan from Dubai Islamic Bank. This user-friendly calculator allows you to input essential information, such as the property value, desired loan amount, and loan tenure, to generate an approximate monthly payment amount.

Using this Home Loan Calculator, you can better understand your financial obligations and make well-informed decisions when selecting a suitable financing option. This tool can also assist you in comparing different financing scenarios and determining a property's affordability, ensuring that you make the most of your investment.

Terms and Conditions of Dubai Islamic Bank Commercial Property Finance

Listed below are the prominent terms and conditions associated with your DIB commercial property finance –

• Upon approval of your loan, the bank will send you a copy of the contract. You must review and read the terms and conditions before signing it.
• During the cooling-off period of 5 days, you can cancel or change the application.
• You shall be responsible for the accuracy of the information and data in the loan application.
• If you intend to consolidate your current finance facility to choose to refinance, the bank will offer a comparison of the calculation methods used and the total rental payment to be charged throughout the new finance facility before you sign the new home finance document.

Why DIB Commercial Property Finance?

Dubai Islamic Bank commercial property finance is a top-notch choice for businesses and individuals looking to invest in commercial properties in the UAE. Its competitive profit rates, flexible terms, and customer-centric approach make for a great solution for those who want to expand their investment portfolio or secure financing for their commercial real estate needs.

Some of the reasons why DIB commercial property finance is a great choice are given below:

• As reportedly the world's first Islamic bank, DIB provides excellent financial products that comply with Sharia law. This ensures that your financing aligns with your religious beliefs.
• The DIB commercial property finance profit rates start from as low as 3.15% per annum, which are determined based on your profile and other factors.
• This home financing product comes with high flexibility, allowing you to tailor your financing plan to suit your circumstances and requirements.
• With DIB variable rate structure, you can choose a fixed margin linked to the EIBOR, ensuring that your repayment amounts remain predictable throughout the financing term.
• DIB has a user-friendly home loan calculator on its site that helps you estimate your monthly repayments and overall financing costs. Using this tool, you can make informed decisions about your commercial property financing and plan your investment strategy accordingly.

How to Apply for DIB Commercial Property Finance in Dubai, UAE?

Policybazaar UAE offers a variety of financial solutions to its customers - this also includes DIB Commercial Property Finance. Applying for DIB Commercial Property Finance through Policybazaar.ae is a simple process that can help you secure the funds needed to make a significant investment in the growing real estate market of the UAE.

To apply for DIB commercial property finance through policybazaar.ae, continue on our official website and navigate to the 'Home Loans' section from the drop-down menu. Fill out the lead form and hit the 'Submit' button.

You will now be redirected to the 'Home Loan Quotes' page, where you can find available home loan plans. You will also find comprehensive information about each product, including eligibility criteria, required documents, interest/profit rates, repayment terms, and more. Ensure that you meet the eligibility requirements before proceeding with the application.

Once you have confirmed your eligibility, collect the necessary documents to speed up the loan application process. With your documents in order, you can apply for the DIB commercial property finance plan. You can also use the filter option to sort the home loan plans per your needs and choose the best among them.

The benefits of applying for DIB commercial property finance via policybazaar.ae are listed below:

• Policybazaar.ae online platform simplifies the application process, allowing you to apply for financing from the comfort of your home or office. This saves you time and effort that would otherwise be spent visiting physical branches and completing paperwork.
• Our team of experienced professionals can provide personalised guidance and support throughout the application and approval process. Their expertise can help you make informed decisions and ensure a smooth experience.
• You can compare various financing options available in the market and make an informed decision as per your unique requirements. With our platform, you can find the most suitable financing option that aligns with your investment goals and financial situation.
• By applying through Policybazaar.ae, you can gain access to competitive interest rates as well. This can reduce the overall cost of your investment and potentially increase your returns.
• With Policybazaar.ae, you can enjoy a faster approval process compared to traditional financing methods. This can help you seize time-sensitive investment opportunities and expedite the process of acquiring the loan.
• We ensure that all relevant information about the financing product is available on our website so that you get to make well-informed decisions and avoid potential surprises during the application and repayment process.
• Our round-the-clock customer service can guide you throughout the loan application process.

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