Rates & pricing

A day-count convention treating every month as 30 days and the year as 360 days for interest computation (ADCB; most peers use actual/365).

A day-count convention accruing interest daily on a 365-day year, applied to the daily outstanding balance.

Extra rental amount that may be added to the agreed rental alongside advance and supplementary rental in FAB's Forward Ijara.

Construction-period payment under a Forward Ijara equal to profit-only rental on the accumulated disbursed amount, during which the principal does not decrease.

A reference rate expressing the total annual cost of the loan, bundling the interest rate with processing fees and insurance premiums over the maximum permissible tenor.

Indicative total yearly cost of the Islamic home finance including profit rate, processing fees, property evaluation and takaful components.

Benchmark interest rate against which credit facilities are priced and re-priced.

Standard Chartered's reference rate for variable pricing — EIBOR or the bank's internal base lending rate (SCBLR), whichever applies to the facility.

A pricing structure combining an initial fixed-rate period with a subsequent variable EIBOR-plus-margin period for the remaining tenor.

Interest computed on each day's outstanding balance and collected monthly, so payment timing within the month affects total interest.

The all-in variable profit rate at Emirates Islamic, composed of the relevant tenor EIBOR plus the fixed margin.

The UAE interbank reference rate published by the Central Bank, used as the base rate for variable mortgage pricing with monthly, quarterly or semi-annual fixings.

The level monthly lease installment combining fixed (principal) and variable (profit) rental components over the finance tenor.

Al Hilal's naming for the EMI components: principal amortization (fixed), return/profit on the outstanding balance (variable), and extras such as takaful (supplementary).

An interest rate that remains unchanged for a specified introductory period (typically 1, 2, 3 or 5 years) of the loan.

The fixed percentage added to the reference rate (EIBOR or base rate) to set the customer's mortgage rate; fixed for the loan's life at most banks.

The principal component of the periodic lease payment: the total finance amount amortized over the Ijarah term.

Al Hilal's terminology for fixed and variable profit rates on the Ijarah, with the variable element benchmarked to 3-month EIBOR plus margin.

A nominal rate computed on the original principal for the whole tenor; KFS docs quote it as the lower 'equivalent' of a reducing-balance rate for comparison.

ADCB's name for the variable-rate Ijarah option where the rental rate floats from inception at EIBOR plus a fixed margin.

A bank-set minimum interest rate below which the variable mortgage rate cannot fall, regardless of how low the reference rate drops.

A loan carrying no interest, repaid in equal instalments of principal only, as in the ADHA National Housing programme.

The opening period of a combination loan during which the fixed rate applies before reversion to a variable rate.

Initial discounted rate on a mortgage; the DBR stress test must reference the rate applying after the introductory period ends. (Official AR wording is literal/awkward as published.)

Ratio of the outstanding loan amount to the appraised value of the residential property; CBUAE caps: 85%/80% (national/expat first home ≤ AED 5m), 65%/60% second or investment, 50% off-plan.

FAB's internal variable base rate for mortgage pricing, from which customer rates are derived (e.g. MBR minus 0.25% on small-buildings finance).

The undertaking that interest is charged only on unpaid principal, never capitalised onto unpaid interest.

Standard Chartered's term for the fixed margin added to the Base Rate, adjustable at the bank's discretion with advance notice.

The profit rate charged on an Islamic home finance, expressed as the rental rate on the lease rather than interest on a loan.

The scheduled date (e.g. quarterly on 1 Jan/Apr/Jul/Oct, or the 1st of each calendar quarter) when the EIBOR fixing is taken and the lending rate reset.

Profit calculation basis, per CBUAE guidelines, where rental is charged on the remaining balance of fixed rental (principal) amounts rather than the original finance amount.

The periodic lease payment owed by the customer under the Ijarah agreement.

The periodic reset of a variable mortgage rate to the current reference rate plus margin, occurring quarterly (or monthly) on the review date.

The automatic switch from the introductory fixed rate to the variable EIBOR-plus-margin rate at the end of the fixed period.

The bank's internal cost-of-funds benchmark used in place of EIBOR as the Base Rate on some facilities, fixed on the last working day before repricing.

A mandatory KFS table showing how the EMI changes if the reference rate rises or falls by given amounts.

NBF's term for the post-fixed-period pricing: a variable rate combining 3-month EIBOR plus spread subject to a minimum floor rate (Arabic doc paraphrases it as معدل الفائدة المتغيرة rather than a distinct term).

Additional rental component recovering costs the customer incurs as the bank's service agent, and in some banks bundling life and property takaful contributions.

The agreed rent the lessee pays the lessor in an Ijarah transaction — the rental from which the bank's profit derives.

An interest rate that moves up or down with a reference rate (EIBOR or bank base rate) plus a fixed margin, changing the EMI at each review.

The profit component of the periodic lease payment, calculated as outstanding fixed rental times the profit rate times days over the year, resetting with EIBOR.