Dubai Bank Ltd. has created a service for its cardholders in the United Arab Emirates that enables them to pay off existing debts on other issuers’ cards in monthly installments, the Islamic bank announced Sept. 5.
The service provides added convenience in managing card debts by enabling new and existing customers to shift their credit card balances to a Dubai Bank Covered card account, the Dubai-based issuer said in a press release.
Once they transfer a balance, holders of the Visa-branded card may set up plans to pay back the debt in installments over six, 12, 18 or 24 months at an annual interest rate of less than 18%, a bank customer service representative tells PaymentsSource.
Other card issuers in the United Arab Emirates charge interest ranging between 27% and 38% annually.
The Covered card comes with no annual fee, according to the bank's website.
Dubai Bank also is offering a new service to enable Covered cardholders to order a check made out for up to 100% of the cash limit on their card account. They similarly may pay back the check amount over the same installment periods at an interest rate lower than the annual interest rate for cash loans, he says.
Cardholders may not use the Shariah-compliant, Visa-branded credit card to pay for un-Islamic activities such as gambling or for such products as pork or pornographic material.
