Abu Dhabi banks including First Abu Dhabi Bank (FAB), Abu Dhabi Islamic Bank (ADIB) and Abu Dhabi Commercial Bank (ADCB), in coordination with Abu Dhabi’s Department of Finance and Department of Economic Development, launched 10 banking-related initiatives specifically for the benefit of individuals and 7 financial initiatives for SMEs to protect them from the economic impact of the spread of COVID-19 in the UAE.
Initiatives for individuals
Banks have a few initiatives for those individuals specifically affected by COVID-19 and some initiatives that are for all individuals.
Initiatives for individuals impacted by COVID-19
Banks can:
- defer instalments (principal and interest) on existing loans (personal, auto, mortgages) and credit cards for up to 3 months for eligible customers until 30 Jun 2020 with no additional bank charges
- halt foreclosures on mortgages for defaulted customers until 30 Jun 2020
- halt suspension of bank accounts for retrenched customers until 30 Sep 2020
- refund credit card processing fees in full for foreign currency transactions conducted after 1 January 2020, associated with cancellation of travel plans
- make available installment programmes with no service fees for utility bill payments until 30 Jun 2020
Initiatives for all individuals
Banks can:
- defer installments (principal and interest) on new loans (personal, auto, mortgages) and credit cards for up to 3 months for eligible customers until 30 Jun 2020 with 50 per cent reduction in associated bank charges
- reduce interest charges on new loans (personal, auto, mortgages) and credit cards for eligible customers based on new prevailing rates for eligible customers
- reduce bank charges by 50 per cent on early settlement of existing loans (personal, auto, mortgages) for eligible customers until 30 Jun 2020
- reduce required down-payment by 5 per cent for first-time home buyers
- provide interest-free installment plans for school tuition with waiver of service charges or zero per cent interest loan until 30 Jun 2020.
Initiatives for SMEs
Banks have a few initiatives for those SMEs specifically affected by COVID-19 and some initiatives that are for all SMEs.
Initiatives for SMEs impacted by COVID-19
Banks can:
- defer installments (principal and interest) on existing borrowing for up to 3 months for eligible customers until 30 Jun 2020 with no additional bank charges
- reduce bank's merchant service fees (credit card transactions) by 50 per cent for eligible SME customers with usage below AED 5 million per annum until 30 Jun 2020
- reduce banking fees and charges on ‘zero balance’ accounts by up to 50 per cent for eligible customers
- reduce the requirements for maintaining minimum average balance for all SME account categories to up to AED10,000 per month for eligible customers.
For all SMEs
Banks can:
- defer installments (principal and interest) on new borrowings for up to 3 months for eligible customers until 30 Jun 2020 with 50 per cent reduction in associated bank charges
- reduce interest charges on new borrowings based on new prevailing interest rates for eligible customers
- reduce bank charges by 50 per cent on early settlement of existing borrowings for eligible customers until 30 Jun 2020.
All the initiatives stated may be revisited and updated subject to the latest market conditions.
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