^{Customers in need of extra care} Guide to getting an installment deferment on your loan or finance

For every challenge, there is a smarter way forward. A guide to installment deferments on your loan or finance for UAE nationals.

As a UAE National, you work hard to support your family, build a secure future, and contribute to the nation’s progress. But even the most carefully planned finances can be tested by life’s unexpected turns, be it a medical emergency, court-related obligation, or urgent home repairs. In such times, requesting to defer your loan or finance installment may seem like a practical step. This guide is designed to help you understand when deferments apply, what documents are needed, and how to make the most responsible choice for your long-term financial well-being.

• I have a Long Tenor Loan or Finance. Can I apply for deferment?
  If your existing loan or finance extends to or beyond typical age maturity limits (for example, 75 years), your deferment request may not be approved. However, you can present proof of additional income and agree to raise your EMI (Equated Monthly Installment), which shortens your loan or finance term. If you exhibit financial discipline and provide the necessary documentation, your case may be considered. It is also important that regular salary credits are reflected in your bank account. This helps demonstrate consistent income, which is key a requirement for eligibility. Please note that installment deferments on your loan or finance are available upon request and considered on a case-by-case basis. Approval is at the sole discretion of the bank and is not a standard feature offered to all customers. Learn more on loan or finance payment deferral terms and conditions.
• I have a loan or finance under a special long-tenor scheme or government-supported programme. Am I eligible for deferment?
  If your loan or finance is part of a special initiative, such as a subsidised loan or finance with a fixed Debt Burden Ratio (DBR) that you may have already signed an agreement not to request deferments. These programmes typically come with pre-agreed conditions that exclude payment holidays. You will need to comply with those terms until the loan or finance is either regularised or closed.
• I restructured my loan or finance due to financial difficulty. Can I still ask for a deferment?
  Loans or finances that have already been restructured due to payment challenges are not typically eligible for further deferment. However, if your financial situation improves and you can provide verified proof of increased income, financial institutions may reassess your payment plan. Showing a willingness to shorten the loan or finance term by raising your EMI can work in your favor.
• I have a court-directed financial penalty and risk imprisonment. Can I request deferment support?
  Yes, this is considered a high-priority case. If you are able to provide official court documentation verifying the penalty and its urgency, your deferment request may be expedited. Approval conditions may include sending the EMI or equivalent amount directly to the court. Decision timelines typically range between 2 to 4 working days, depending on internal approval processes.
• I need help due to a medical emergency. Can I get a deferment?
  Medical emergencies, particularly for you or an immediate family member, are often taken seriously. You will need to present medical documents and demonstrate that you lack adequate insurance or Takaful coverage. If the EMI amount can directly support your emergency costs, and any funding gap can be explained, deferment can be granted with supportive terms.
• My home suffered damage due to a fire or natural disaster. Can I apply for deferment?
  Yes, in cases of home damage caused by uncontrollable events like fires or natural disasters, deferment may be approved. Documented proof such as photos, inspection reports, or insurance claims is essential. Processing may take 2 to 4 working days after submission of all required documents.
• I want a deferment to pay my children’s school term fees. Will my request be accepted?
  While education is important, such expenses are expected to be planned for in advance. If no extenuating circumstances exist, deferment requests for school fees are generally declined. Consider revisiting your monthly savings strategy to better prepare for these recurring costs.
• I need a deferment to manage Ramadan, EID, or lifestyle-related expenses. Is this possible?
  Expenses related to religious festivals, celebrations, utility bills, or lifestyle upgrades are not considered valid grounds for deferment. It is recommended that such expenditures be managed through personal budgeting and responsible financial planning.
• My deferment request was rejected. What are my options?
  If your deferment request doesn’t align with the bank policy norms, you may still have options:
  • Has your salary recently increased?
  • Do you have a second income stream?

  If so, you can explore restructuring your EMI to shorten the loan or finance term. Financial institutions often welcome efforts to reduce long tenors if supported by verified income proof and customer willingness.
• I need a deferment but also require immediate cash before salary date. What can I do?
  In select cases where both deferment and immediate cash support are requested, a temporary overdraft or finance against salary may be offered. This could be up to 50% of the remaining cash flow after EMI, and would be recovered automatically once your salary is credited in the same month, the EMI + temporary overdraft or finance against salary recovery. Such support is discretionary and assessed individually.

What you need to know about deferments

Installment deferments on your loan are not “free breaks.” Each time a deferment is granted, your overall loan repayment period increases because the interest continues to accrue during the holiday period. This means, you will be paying more in the long run. That is why financial experts and institutions alike recommend that deferments be used sparingly and only for genuinely urgent, well-documented needs.

For Islamic finance structures, payment deferment does not affect the profit component. If you have a Shari’ah-compliant finance and applied for an installment deferment, the tenure of your finance will be extended by the number of months corresponding to the number of monthly installments deferred. While the total number of installments will remain as is, and the deferred installment (including the profit) will be moved to the second last installment due on your payment schedule.

Planning is key

Installment deferments on your loan or finance can offer short-term relief during genuine emergencies, but they are not a long-term solution. Customers are encouraged to:

Remember: The best way to handle financial strain is not to delay payments, but to plan ahead.