Dubai banks offer relief for coronavirus impacted customers

The measures announced by the banks seek to support the UAE Government and the UAE Central Bank's six-month economic stimulus package and the Dubai Government's three-month economic stimulus package to sustain the business sector in the UAE and Dubai.

Leading Dubai banks that have joined the effort to provide relief to their customers include Emirates NBD, Dubai Islamic Bank, Emirates Islamic, Mashreq and Commercial Bank of Dubai.

“Our measures to support and protect our stakeholders, as part of our Group-wide business resilience and continuity plans, are aligned with the directives of the Dubai leadership to develop solutions for defusing any obstacle that can potentially hinder our progress. We recognise the need to protect those most vulnerable and are committed to lending a helping hand during this uncertain time,” said Sheikh Ahmad bin Saeed Al Maktoum, Chairman of Emirates NBD.

Relief measures by conventional and Islamic banks encompass, retail, small and medium enterprises and large businesses.

Relief from conventional banks

Retail

Retail loan customers who have been placed on unpaid leave by their employers can approach the bank for repayment holiday of up to three months with zero interest and fees.

Customers who have availed personal loans, auto loans or mortgages can apply for a one-month repayment holiday with zero fees.

All first time home buyers can benefit from a 5 per cent increase in the Loan-to-Value ratio (LTV) and full waiver of processing fees.

Banks will offer refund of charges on cash withdrawals done using debit cards on all ATMs of other banks across the UAE.

Additionally credit card customers can benefit from interest-free installment plans for all school fee payments as well as grocery purchases with no processing fees for up to 6 months. This is in addition to existing attractive low interest, installment plans available for higher tenors across all retail purchases.

As part of the package retail customers who may need to cancel their travel bookings done on their credit and debit cards will receive a refund of the foreign currency transaction fees charged by the bank. Customers using credit cards for cash withdrawals will enjoy 50 per cent reduction in the cash advance charges.

SME Customers

Small business customers who have availed merchant loans, equipment loans or business vehicle loans and have been impacted by the ongoing COVID-19 situation, can apply for a repayment holiday of 3 months with zero interest and fees.

Bank have also reduced the monthly minimum balance required for basic business banking account to Dh10,000. Also the minimum balance charges for the basic business banking account will be waived for a period of 3 months.

Business and wholesale banking

Business banking customers with working capital are asked to contact their respective relationship managers to achieve an optimal financial solution.

For wholesale banking clients relief measures prioritise key industry sectors contributing to the UAE economy that have been most affected in the current situation, including healthcare, aviation, hospitality, retail, event management, consumer goods and education, by offering refinancing, repayment deferrals or lower repayments where required.

Reduced bank charges for digital trade transactions for all trade finance customers. Customers using the digital platforms are offered a significant reduction in transaction processing and handling fees and new activations at zero cost for the next three months.

The banks are also providing their customers with enhanced credit and trade lines to manage ongoing operational costs.

Trading clients

Banks have announced support for affected customers trading in the UAE bourses by offering suitable instalment payment plans against additional collateral to help them regularise their margin trading positions. Respective Relationship Managers will continue to work alongside and support customers faced with margin calls on their share portfolios.