Dubai: Juggling multiple bills and unexpected expenses can be stressful, but what if you could spread out those costs into manageable monthly payments?
Whether you have just been fined for speeding, or had to make an unplanned international trip, there are different schemes on offer that can make managing your budget a lot easier.
Here are nine major expenses and purchases that you can convert into monthly instalments.
1. Abu Dhabi, Dubai traffic fines
Did you get fined for going over the speed limit, or using your phone while driving? Traffic fines in the UAE are clearly mentioned in the Federal Traffic Law, and if you find yourself in a situation where you committed a serious violation with a high fine amount, there are ways in which you can make the repayment a little easier. Both Abu Dhabi and Dubai Police offer motorists instalment options, which can help you spread out the payment over a period of three, six or 12 months. But to avail of the service, you need to have an account with banks that have partnered with them. To find out how you can use the instalment service from Abu Dhabi Police, click here and for the Dubai traffic fine instalment plan, click here.
2. Parking and Darb fines
In Abu Dhabi, you can also convert a parking fine or toll gate related fine into easy instalments. The service is offered by the Integrated Transport Centre (ITC) of the Department of Municipalities and Transport (DMT) in Abu Dhabi, which manages both the parking services in the emirate as well as the Darb toll gates.
But to be able to convert your payments into instalments over three, six, nine or 12 months, the fine needs to have a minimum collective of Dh3,000 and you should have a credit card issued from the following partnering banks:
• First Abu Dhabi Bank (FAB)
• Abu Dhabi Commercial Bank (ADCB)
• Emirates Islamic Bank
To find out more about the service, click here.
3. Rent, Dewa bill
In Dubai, you have multiple ways of paying your rent and one of the latest options that has been made available to tenants is ‘direct debit’, where you can use your credit card to pay the rent amount. The Direct Debit System also allows for the option of converting your rent into an easy payment plan, with instalments spread out through the year. However, as reported by Gulf News, this can only be done if it is mutually agreed upon by the tenant and landlord.
Also, if your summer electricity bill has been higher than usual, you can also opt for a zero per cent interest, and zero processing fee instalment plan through Dubai Electricity and Water Authority (Dewa).
If your bill is over Dh1,000, all you need to do is pay it online by using a credit card issued by Emirates NBD, Mashreq Bank, Emirates Islamic and Dubai Islamic Bank, which are the partnering banks.
You can then convert this payment into instalments by using your bank’s website, app or by calling the customer service number.
4. Your job loss insurance
The Involuntary Loss of Employment (ILOE) scheme, which was introduced last year, is a mandatory scheme which employees in the UAE need to pay for, to protect themselves in case of unexpected job loss. While the premium for most workers is Dh60 per year, even this can be converted into monthly payments of Dh5. To know more, click here.
5. Medical bills
Earlier this year, the Ministry of Health and Prevention (MOHAP) announced an Easy Payment Plan (EPP), which allows you to pay the Ministry’s service fees in instalments over three, six, nine, or 12 months.
But even if you are visiting a private healthcare provider, there are different options that you can explore, in case your bill is higher than expected. Many banks, hospitals and clinics have tied up to make it easier for patients to cover the expenses by converting them into manageable instalments. While the minimum bill requirement and number of instalments available may differ from each service provider to the other, you can always check with your bank or your hospital and clinic to find out if you can opt for an easy payment plan.
6. High credit card bills
If you made a particularly significant purchase on your credit card or had a high expense month because you were travelling or refurnishing your home, credit card bills can also be converted into instalment plans for most banks in the UAE. If you want to know more about when going for an EPP is recommended for credit card bills, and the precautions you need to take when going for this option, click here.
7. Airline tickets
Family trips can quickly burn a hole in the pocket, but UAE-based airlines Emirates, Etihad, and Air Arabia, all have instalment plans that can help you spread the ticket price out over 60 months in some cases!
The minimum transaction amount and how many instalments you can convert them into will vary depending on the airline and bank. While the EPP may be zero per cent interest, you should factor in a possible processing fee when you go for this option.
Ideally, you should speak with your bank before making the booking, to find out if you are eligible for the EPP option and how much the processing fee would be for your specific purchase.
Emirates
Participating banks:
- ADCB
- Ajman Bank
- Commercial Bank International (CBI)
- Citibank
- Dubai Islamic Bank
- Emirates Islamic Bank
- Emirates NBD
- FAB
- HSBC
- RAKBANK
- Sharjah Islamic Bank
If you have a credit card from any of these banks, you may be eligible to pay for your ticket at zero profit credit over three monthly instalments.
Etihad
Participating banks:
- Abu Dhabi Commercial Bank
- Al Hilal Bank
- Al-Mawarid Bank
- Commercial Bank of Dubai
- Dubai First
- Dubai Islamic Bank
- Emirates Islamic Bank
- Emirates NBD
- First Abu Dhabi Bank
- HSBC
- Mashreq Bank
- Najm
- RAK Bank
- Samba
You can opt to pay by instalments when you book through etihad.com – simply select instalments when you check out and pay using a Visa or Mastercard from one of these participating banks. Depending on the terms of your bank, you can pick your payment plan from three to 60 months.
Air Arabia
Air Arabia, too, offers a zero per cent instalment plan on ticket purchases of over Dh1,000, if you pay using a credit card from a participating bank, some of which are Arab Bank, First Abu Dhabi Bank and Emirates NBD.
8. School fees
Banks in the UAE have also tied up with schools to help parents convert tuition fee payments into easy instalments. All you need to do is speak with your child’s school as well as your bank, and chances are you may be able to convert your yearly tuition fees into smaller instalments, while earning credit points in the process.
9. Online shopping, groceries
Whether you are planning a big party or looking to indulge and buy a pair of luxury shoes, the UAE has multiple ‘Buy now, pay later’ options, regulated by the UAE’s Central Bank. If you have an app for one of these services, you can open the app to find out the partnering outlets where you can split your purchases into smaller payments.
Similarly, major supermarket chains, home furnishing shops and even flower shops in the UAE, have either tied up with banks or third-party service providers to allow customers to split payments into monthly instalments.
And while these schemes can be helpful when it comes to major purchases, you should also exercise caution and keep your budget in check. For personal finance advice from industry experts and top tips on how you can manage your money better, check out our Your Money section here.
