Aafaq Finance Personal Loan

Set up in 2006, Aafaq Finance is a leading Islamic financial institution in the UAE and provides a wide range of Shariah-compliant products and services across the country. A remarkable feature of Aafaq Finance is that it provides top-notch services to its customers while ensuring the utmost convenience for them.

In this article, we will exclusively discuss one of Aafaq Finance’s products, namely personal loans. 

Features and Benefits of Aafaq Finance Personal Loan

Mentioned below are the key features and benefits of Aafaq Finance personal finance or personal loan -

• The bank offers you a minimum finance amount of up to AED 15,000.
• You can have a flexible loan repayment tenure of up to 48 months.
• This personal finance product is available at attractive profit rates.

What are the Eligibility Criteria to Apply for Aafaq Finance Personal Loan in the UAE?

In order to be eligible for the Aafaq Finance personal loan, you must meet the following requirements:

Minimum Age	21 Years
Maximum Age (Upon Maturity of Financing)	60-65 Years (Depending on the Nationality of the Applicant)
Minimum Salary Requirement	AED 5,000 Per Month
Nationality	UAE Nationals and UAE Expatriates (With a Valid Residence Visa)

Which Documents are Required to Apply for the Aafaq Finance Personal Loan in the Emirates?

To carry out the personal loan application process, you must have the following set of documents -

General Documents

• Original and valid Emirates ID
• Original passport
• Original Kulasat Qaid (for UAE nationals)
• Completed filled loan application form
• Arrangement/ Processing fees
• Previous 3 months’ personal bank statements
• Liability letter (if applicable)
• Undated cheque for the total Murabaha amount
• Post-dated cheques from salary account or personal bank account

Additional Documents for Salaried Individuals

• Valid salary certificate mentioning the length of service, designation, basic salary, and other allowances 

Additional Documents for Self-Employed Individuals

• Valid trade licence
• Previous 3 months’ company bank statements
• Chamber of Commerce Registration
• Valid copy of bank facility letters (if applicable)

How to Apply for the Aafaq Personal Loan?

There are three different ways to apply for the Aafaq Finance personal loan in the UAE:

By Filling Out the Application Form

Here is the step-by-step process to apply for a personal loan at Aafaq Finance by filling up the application form -

• Visit the official website of Aafaq Finance and click on the ‘Products’ drop-down menu.
• Select ‘Personal Finance’.
• Once you are directed to the personal loan page, scroll to the bottom.
• Select the relevant option to view the personal loan application form.
• Take a printout of the form, fill it out, and submit it to the bank. 

Via Banks’ Official Website

If you wish to apply online, you can apply directly through Aafaq Finance’s official website as well. Simply open the personal loan section and go to the bottom of the page. To apply, tap on the appropriate option. After you are directed to the next page, fill out the form with the correct information. 

Via Offline Means

To process your Aafaq Finance personal loan in person, you can also go to its nearest branch and get in touch with one of the concerned representatives. The assigned agent will guide you throughout the application process. Make sure that you carry all the mandatory documents to avoid any hassle during the procedure.

Aafaq Personal Loan: Fees and Charges

The following table mentions all the fees and charges of the Aafaq Finance personal loan in the UAE -

Type of Fee	Charges
Applicable Fixed Rate	5% to 15% per annum (Fixed Rate) (9.15% per annum to 27.5% per annum in reducing financing) *Maximum financing tenure up to 4 years
Applicable Late Payment Undertaking to Donate	4% per annum applied to the unpaid sum (Maximum AED 200) The amount will be routed to the designated charity through Aafaq as per Sharia guidelines
Due Diligence/ Processing Fee	Minimum AED 500 Maximum AED 2,500 Note: All processing fees are calculated based on actual expenses
Documentation Coordination/ Deferment/ Postpone Fee/ Credit Appraisal Fee	Deferment of Instalment: AED 100  A maximum of 2 deferments per finance year are permissible subject to the conditions given below -   No back-to-back deferment allowed - at least 2 instalments should be paid between deferrals. The customer should not be delinquent on any of his/ her facilities at the time of deferment request. For new finance, a minimum of 6 instalments should be paid before the first deferment
Finance (Loan) Copy, Issuing Redemption Statements, Audit Confirmation, and More	AED 25
Finance Cancellation Fee	AED 100
Release Letter (Clearance Letters)	AED 50
Liability Letter Issued to Government Departments, Bank/ Financial Institutions/ Embassies	AED 60
Applicable Early Settlement Charges	1% of the Outstanding Balance (Maximum: AED 10,000)

Personal Loan Calculator

With the help of a personal loan calculator, you can easily get an estimation of your monthly instalments. The tool is available online, and anyone can access it for free. All you need to do is provide a few pieces of information such as your loan amount and loan tenure to get your result within seconds.

You can easily find the free calculator on policybazaar.ae, our digital platform. Simply continue on our website and click on the ‘Banking Products’ section. Once you select the ‘Personal Loan Calculator’ option, you will be directed to the personal loan page.

Locate the calculator and provide it with the required details to get your results instantly. It’s worth mentioning that the outcome will be accurate as per the details entered. The variations in personal loan interest rates and other factors, however, may lead to differences in the actual instalments.

Aafaq Personal Loan: Terms and Conditions

Here are some of the terms and conditions related to the Aafaq Finance personal loan in the UAE -

• In case the customer fails to adhere to the required procedures or provides inaccurate information or data that contravenes the applicable laws in the UAE, the financial institution reserves the right to decline the execution of any requests, instructions, or services requested by the customer.
• In accordance with the applicable law or financial institution policy, the institution retains the right to amend and adjust these terms and conditions as well as the services and products offered. The customer will be duly notified of such changes within a timeframe of 60 days. 
• Upon approval of the finance, Aafaq Islamic Finance will provide you with a comprehensive copy of the Islamic financing contract, encompassing the product structure details and terms and conditions. You will be allotted an adequate amount of time to thoroughly review the provided documents before proceeding with the signing process.

For detailed T&C, please refer to the official website of Aafaq Finance.

Let’s now take a look at what loan seekers have to ask regarding Aafaq Finance personal loan!

Frequently Asked Questions