UAE: 8 banks that offer up to 90% of your salary in advance

This facility is a big relief for customers to meet expenses such as electricity bills, hospital charges, or credit card payments



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by

Waheed Abbas

Published: Tue 20 Dec 2022, 11:48 AM

Last updated: Tue 20 Dec 2022, 3:03 PM

Some banks in the UAE offer salaries in advance to cater to their customers' emergency needs. Be it a hospital bill, credit card payment, electricity bill or any other urgent cash need, this facility is a big relief for customers to meet their untoward expenses. And some residents find it a more viable option rather than borrowing money from people.

The bank customers who wish to avail this facility can get their salary credited into their account directly upon the approval of the application with just a click of a button through the bank’s portal, ATMs, customer service centre or by visiting the branch.

However, banks have different conditions and eligibility criteria for getting a salary in advance, which employees should check before applying for it.

Some banks made it mandatory that customers must not transfer their salary to another bank when ‘salary in advance’ is active on the account. However, some banks allow customers who have a salary transfer account with other banks to obtain a salary in advance upon submitting certain documents.

Some banks also provide instant cash through salary overdraft facility to their customers. A salary overdraft is a form of revolving credit that they can avail of on their salary account.

Below is the list of banks that offer an advance salary to their customers:

1. Dubai Islamic Bank: This bank offers up to 90 per cent of monthly net salary in advance to its customers with a cap of Dh13,500. Al Islami Salary-in-Advance is based on Qard Hasan under which DIB provides an interest-free loan to the customer.

Under this product, DIB charges the customer a fixed fee against the actual cost of the services provided by DIB irrespective of the amount and duration of the facility.

2. Abu Dhabi Islamic Bank: ADIB allows its customers to access up to 50 per cent of their salary on a Murabaha basis before the salary payment day at a competitive profit rate and for zero process fees.

3. Abu Dhabi Commercial Bank: A salary advance facility is offered to customers against a one-time processing fee of Dh105. Through this facility, the bank’s customers will have instant access to cash when they need it. The customers are offered up to 2.5 times their salary. The customer is required to fill out an application form, salary transfer letter, liability letter (if required), three months' bank statements (if the account is with another bank), and a copy of passport and Emirates ID card. The UAE residents can apply through its call centre or by visiting one of its branches.

4. Ras Al Khaimah bank: It provides a salary advance facility to its customers at a cost of Dh200.

The applicant needs to have his/her monthly salary transferred to his RAKislamic Account and be a registered RAKdirect customer.

5. United Arab Bank: A salary advance facility is offered under the Islamic concept of Qard Al Hasan, which refers to an interest-free loan. It offers a low fixed monthly fee and no interest to meet emergency cash requirements. The applicant can apply for this service through its branches or customer service helpline. The bank also offers a revolving overdraft facility to customers seeking additional funds.

6. Ajman Bank: The Shariah-compliant bank offers a temporary salary advance facility to its customers for unforeseen financial needs. “If you are a salaried individual and receiving your salary in your account at Ajman Bank, you could be eligible to apply for the Salary Advance Facility. This facility is based on a Qard Hasan basis and is subject to terms and conditions,” it said. Customers, with a minimum salary of Dh5,000, can avail of this facility at 80 per cent of their salary. Customers can apply for this facility monthly but not more than 12 times per year. However, full payment for the amount availed from the facility has to be made at the end of the month. The bank charges a Dh300 transaction fee.

7. Sharjah Islamic Bank: This bank also provides advance salary options which customers can apply through its digital platforms, ATMs and by calling its service centres. Through Tayseer (salary advance), the customer will get 80 per cent of his/her salary as Qard Hassan. Once the transaction is approved, the amount is sent to the customer's account in the form of an overdraft, so that he/she can withdraw the amount through ATM, Bank check, or transfer an amount to another account. An administration fee of Dh200 plus five per cent VAT is charged upon availing of this service.

8. Emirates NBD: Dubai’s largest bank provides up to twice the amount of salary through an overdraft facility. The amount is available through an account and can be utilised via debit card, cheques and online transfers. The applicant should have a minimum net income of Dh3,000. According to its website, the customer is charged an interest rate of 1.5 per cent per month and 18 per cent per annum.

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