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1. Introduction and Applicability

Siraj Finance PJSC ("Siraj Finance") is an Islamic financial institution that adheres to the principles of Sharia in all its financial transactions. These General Terms & Conditions ("T&Cs") govern all products and services offered by Siraj Finance to its customers. By utilizing Siraj Finance's products or services, the customer agrees to be bound by these T&Cs, as may be amended from time to time.

These T&Cs are applicable to all financing facilities, including but not limited to Vehicle Finance, Home Finance, Personal Finance, and other Sharia-compliant offerings provided by Siraj Finance. All transactions are governed by the regulations of the Central Bank of the UAE, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards, and Siraj Finance’s Internal Sharia Supervision Committee (“ISSC”).

2. Definitions and Interpretations

2.1 Definitions

The following terms shall have the meanings assigned to them unless the context expressly requires otherwise:

"AED" refers to the lawful currency of the United Arab Emirates (UAE).

"Customer" refers to the natural or legal person who applies for or avails of Siraj Finance's products or services.

"Facility" refers to any financing arrangement provided by Siraj Finance under Sharia- compliant structures such as Murabaha, Ijarah, or Salam.

"Murabaha" is a cost-plus-profit structure where Siraj Finance purchases an asset and sells it to the customer at an agreed profit margin, payable in installments.

"Ijarah "Is the transfer of the usufruct of a specific asset for a specific period. However, Ijarah Muntahia Bittamleek: is an Ijarah contract combined with a promise to transfer ownership of the leased asset to the lessee at the end of the lease period or during it, provided all agreed financial obligations are fulfilled.

"Salam" a forward sale agreement where Siraj Finance pays the purchase price in advance, and the customer delivers Sharia-compliant goods at an agreed future date.

"Takaful" is a Sharia-compliant insurance required for financed assets.

"Event of Default" means circumstances specified in the relevant product agreements that entitle Siraj Finance to take remedial action, including but not limited to late payments or breach of terms.

2.2 Interpretations

  1. Words importing the singular include the plural and vice versa.
  2. Words denoting any gender include all genders.
  3. References to "days" mean calendar days unless stated otherwise.
  4. Clause headings are for convenience only and shall not affect the interpretation of these T&Cs.

3. Sharia Compliance

All products and services offered by Siraj Finance are strictly compliant with the principles of Islamic Sharia. Transactions are governed by the rulings and standards of Siraj Finance’s Internal Sharia Supervision Committee, ensuring that they are free from riba (interest), gharar (excessive uncertainty), and any other prohibited elements.

In line with the Sharia concept, Siraj Finance operates under the following structures:

  1. Murabaha: Used for vehicle financing.
  2. Ijarah Muntahia Bittamleek: Used for home financing.
  3. Salam: Used for personal finance Siraj Finance reserves the right to seek advice or clarifications from its Internal Sharia Supervision Committee on any issues arising from these T&Cs. Customers must comply with all conditions outlined in the relevant product agreements to ensure continued Sharia compliance.

4. Eligibility and Customer Obligations

4.1 Eligibility Criteria

To avail of any products or services provided by Siraj Finance, the customer must meet the following eligibility criteria:

  1. Age: The customer must be at least 21 years old.
  2. Residency: The customer must be a resident of the UAE.
  3. Income Requirements: The customer must have a verifiable source of income, and the income details must meet the affordability criteria of Siraj Finance.
  4. Documentation: The customer must submit all required documents, including proof of identity, income, and other documents as specified in the application process.

Siraj Finance reserves the right to amend or waive these criteria at its sole discretion.

4.2 Customer Obligations

  1. Customers are required to provide accurate, complete, and truthful information during the application process and throughout the duration of their relationship with Siraj Finance.
  2. Customers must promptly inform Siraj Finance of any changes to their personal or financial circumstances that could affect their eligibility or obligations.
  3. Customers are obligated to make payments as per the agreed terms in their respective financing agreements and ensure sufficient funds are available in their accounts for payment obligations.

5. Application and Approval Process

5.1 Application Process

Customers must submit a completed application form along with all required supporting documents as specified by Siraj Finance for the respective product or service.

5.2 Credit Evaluation

  1. The approval of any financing facility is subject to Siraj Finance’s credit evaluation process. This includes checks with the UAE Central Bank, Al Etihad Credit Bureau (AECB), and other internal assessments.
  2. Approval is contingent upon the customer meeting the necessary eligibility criteria and creditworthiness as determined by Siraj Finance.

5.3 Approval Rights

Siraj Finance reserves the right to accept or decline any application at its sole discretion. Decline reasons may be communicated to the customer as per internal policies.

6. Product and Service Features

6.1 General Features

Siraj Finance offers a range of Sharia-compliant financial products designed to cater to various customer needs:

  1. Vehicle Finance: Based on the Murabaha structure, allowing customers to purchase new or used vehicles.
  2. Home Finance: Structured under Ijarah Muntahia Bittamleek, enabling customers to lease and eventually own residential or commercial properties.
  3. Personal Finance: Offered under the Salam structure, providing liquidity for personal needs such as education or travel.

6.2 Ownership and Transfer

  1. For Vehicle Finance, ownership of financing/ Murabaha Asset is transferred to the customer by executing the Murabaha contract.
  2. For Home Finance, ownership of the financed / Ijara asset transfers to the customer upon fulfillment of all obligations under the financing agreement.
  3. For Personal Finance, the customer must ensure timely delivery of Salam Commodities as per the Salam Agreement.

6.3 Financing Limits

  1. The minimum financing amount is AED 5,000.
  2. The maximum financing amount varies depending on the product type, customer’s eligibility, and asset value.

6.4 Payment Terms

  1. Payment terms are structured in fixed or variable installments, depending on the product.
  2. Early settlement or partial settlement is allowed, subject to the terms outlined in the specific product agreements.

7. Fees, Charges, and Payment Terms

7.1 Applicable Fees and Charges

  1. Fees and charges for each product or service are transparently disclosed in the relevant section of Schedule of Charges, Key Fact Statements (KFS) and Schedule of Charges.
  2. Common fees include:
    1. Processing / Due diligence fee: It’s a one-time fee to be charged for processing the facility.
    2. Profit Rates: Fixed or variable, depending on the financing structure.
    3. Early Settlement Fees: Applicable for full or partial payment before the maturity date, calculated based on the financing agreement.
    4. Donation for Late Payment: In the event of a late payment, a donation of 2% p.a. on the delayed amount (Min. AED 200 and Max AED 700) must be paid to charity in compliance with Sharia requirements.

7.2 payment Obligations

  1. Customers must adhere to the agreed payment schedules outlined in their financing agreements.
  2. Payments must be made in AED unless otherwise specified.
  3. Failure to meet payment deadlines may result in:
    1. Acceleration of payment/settlement obligations, requiring immediate payment of the remaining balance.
    2. Application of charges or donation amounts as outlined in the relevant agreements and schedule of charges.

8. Security and Collateral

8.1 Security Requirements

Siraj Finance reserves the right to request security as a condition for approving any financing facility. This may include:

  1. Submission of undated cheques.
  2. Guarantees from third parties.
  3. Collateral in the form of assets financed under the facility.

8.2 Right to Exercise Security

In the event of default or non-compliance with the financing agreement, Siraj Finance has the right to:

  1. Insert the date and present undated cheques for payment.
  2. Take possession of the financed assets, such as vehicles or properties.
  3. Take necessary legal action to recover outstanding amounts.

9. Takaful (Sharia-Compliant Insurance)

9.1 Mandatory Takaful Coverage

All financed assets must be insured under a Sharia-compliant Takaful policy to cover risks such as total or partial loss. This is a mandatory requirement for:

  1. Vehicle Finance: The vehicle must be insured for the entire financing tenure.
  2. Home Finance: The property must be insured against risks in accordance with the relevant financing documents, and the associated costs may be factored into the rental payments.
  3. Personal Finance: Customers are encouraged to take Takaful to cover liabilities in case of death or permanent disability.

9.2 Takaful Administration

  1. Siraj Finance may facilitate the Takaful arrangement, but the ultimate responsibility for maintaining active coverage shall remain in accordance with the relevant financing documents.

10. Events of Default and Consequences

10.1 Events Constituting Default

An Event of Default may occur if the customer:

  1. Fails to make any delivery (in case of Personal Salam Finance) / payment by the due date as per the agreed payment schedule.
  2. Provides false, incomplete, or misleading information during the application process or at any point during the financing term.
  3. Breaches any of the terms and conditions of the financing agreements.
  4. Becomes insolvent or declares bankruptcy.
  5. Discontinues employment, leading to a substantial change in financial circumstances without notifying Siraj Finance.

10.2 Consequences of Default

In the event of default, Siraj Finance reserves the right to:

  1. Accelerate the payment schedule, demanding immediate payment of all outstanding amounts.
  2. Take possession of the financed assets such as vehicles or properties.
  3. Present undated cheques submitted as security for payment.
  4. Recover outstanding amounts from any other accounts held by the customer with Siraj Finance.
  5. Terminate the financing agreement and take legal action as deemed necessary.

11. Data Protection and Information Sharing

11.1 Collection and Use of Information

  1. Siraj Finance is authorized to collect, process, and retain customer data for purposes related to processing applications, maintaining facilities, and fulfilling legal or regulatory obligations.
  2. Customer data may include personal information, financial records, and other relevant details necessary for the provision of services.

11.2 Information Sharing

  1. The customer irrevocably authorizes Siraj Finance to share relevant information with:
    1. Governmental and semi-governmental authorities.
    2. Credit bureaus, including the Al Etihad Credit Bureau (AECB).
    3. Other financial institutions or utility/service providers within or outside the UAE as permitted by law.
  2. All shared data is handled in strict confidence, and Siraj Finance ensures compliance with UAE data protection regulations.

11.3 Customer Consent

By accepting these T&Cs, the customer consents to the use and sharing of their data as outlined above. Customers may withdraw consent; however, this may affect the ability of Siraj Finance to provide certain services.

12. Amendments to Terms and Conditions

12.1 Right to Amend

  1. Siraj Finance reserves the right to amend these General Terms & Conditions at any time, in compliance with applicable laws and regulations.
  2. Any amendments will be approved by the Internal Sharia Supervision Committee to ensure ongoing Sharia compliance.

12.2 Notification of Amendments

Customers will be notified of any changes to the T&Cs through any of the appropriate channels, including but not limited to:

  1. Email/SMS communication.
  2. Updates on the Siraj Finance website.
  3. Physical notices at branch locations.

12.3 Customer Acknowledgment

Continued use of Siraj Finance’s products or services after notification of amendments constitutes acceptance of the revised terms.

13. Force Majeure

13.1 Definition

Siraj Finance shall not be held liable for delays, non-performance, or disruptions caused by events beyond its reasonable control. Such events include, but are not limited to:

  1. Natural disasters (e.g., floods, earthquakes, pandemic or storms).
  2. Acts of government, regulatory changes, or legal restrictions.
  3. Wars, acts of terrorism, riots, or civil unrest.
  4. Technical failures, system outages, or interruptions in essential services such as power or telecommunications.

13.2 Customer Obligations

  1. Customers must continue to fulfill their obligations under the financing agreement as soon as the force majeure event is resolved or mitigated.
  2. If the force majeure event renders it impossible for the customer to fulfill obligations, Siraj Finance may review and propose alternative solutions, subject to Sharia Approval.

14. Governing Law and Dispute Resolution

14.1 Governing Law

  1. These General Terms & Conditions, as well as all financing agreements, are governed by the laws of the United Arab Emirates (UAE).
  2. The principles of Islamic Sharia, as interpreted by Siraj Finance’s Internal Sharia Supervision Committee, take precedence over any conflicting legal provisions.

14.2 Dispute Resolution

Any disputes arising from these T&Cs or related agreements shall be resolved through the following process:

  1. Negotiation: Parties will first attempt to resolve disputes amicably through discussion.
  2. Arbitration: If negotiation fails, disputes shall be referred to arbitration in accordance with UAE arbitration laws, ensuring compliance with Sharia principles.
  3. Legal Proceedings: If arbitration is unsuccessful, Siraj Finance reserves the right to pursue legal action through UAE courts.

15. Miscellaneous Provisions

15.1 Severability

If any provision of these T&Cs is found to be invalid or unenforceable under applicable law, the remaining provisions shall remain in full force and effect.

15.2 Language and Precedence

In the event of any conflict between the English and Arabic versions of these T&Cs, the English version shall prevail.

15.3 Notices and Communication

All notices, approvals, and communications related to these T&Cs shall be considered valid when:

  1. Delivered in writing to the customer’s registered address or email address on record. Or;
  2. Published on Siraj Finance’s official website or in its branches.

15.4 No Waiver

Failure by Siraj Finance to enforce any provision of these T&Cs shall not be deemed a waiver of its rights or remedies.