What Is the 5-Day Cooling-Off Period for Loans and Credit Cards in the UAE?

Applying for a personal loan or credit card is an important financial decision. You may have compared the features and checked your eligibility, but still want time to reconsider whether the product fits your needs. Perhaps your plans have changed, or you have questions about the commitment you are making.

A cooling-off period gives you an opportunity to review that decision. Understanding when it applies, how the deadline is calculated and what to do if you change your mind can help you make an informed choice.

For customers considering a Deem Personal Loan or Deem Credit Card, the relevant Key Facts Statements include a five-business-day cooling-off period.

Keep your offer, Key Facts Statement and terms and conditions handy. These documents explain the fees, repayment requirements and cancellation terms for your loan or card. Reviewing them can help you check whether the product fits your budget and identify any questions to ask Deem before proceeding. They also explain when the cooling-off period starts, how to request cancellation and whether any costs may be deducted from your refund if you change your mind.

What Is a Cooling-Off Period in UAE Financial Services?

The Central Bank of the UAE (CBUAE) provides five complete business days after contract signing for applicable products, or longer where other legal or regulatory requirements apply.

Use this time to consider whether you want to proceed. It is separate from a credit card’s interest-free period or a loan repayment date, so check each of these dates individually when reviewing your documents.

Which Financial Products May Have a Cooling-Off Period?

Cooling-off provisions cover credit and other regulated products, subject to applicable requirements and permitted waivers.

For Deem, both Personal Loan and Credit Card Key Facts Statements describe cancellation during the cooling-off period without a penalty, with refunds subject to the stated treatment of direct costs.

For a Deem Personal Loan, review the loan amount, monthly instalment and repayment period so you can plan your budget with confidence. For a Deem Credit Card, understand the fees and repayment requirements, along with the conditions for enjoying its rewards and benefits. If you choose an instalment plan or an additional service, review its terms separately so you understand how it works and any costs involved.

When Does the 5-Business-Day Cooling-Off Period Start?

For a Deem Personal Loan or Credit Card, the cooling-off period lasts five business days from the date you accept the offer. Business days are working days, so the period may be longer than five calendar days because of non-working days or public holidays.

What Can You Do During the Cooling-Off Period?

Start with the questions that could change your decision. Review the relevant Deem Key Facts Statement alongside your offer, rather than relying only on the feature that first attracted you to the product.

• For a personal loan: Check the approved amount, monthly instalment, repayment tenure, applicable rate, fees and total repayment. Consider how the instalment would fit alongside rent, household expenses and existing commitments.
• For a credit card: Review the annual fee, payment due date, minimum payment requirements, interest conditions and any charges for transactions you expect to make. Check the conditions attached to rewards or other benefits.
• For either product: Write down anything you do not understand and ask for an explanation. Keep copies of the documents and responses so you can refer to them later.

Use this time to ask questions, seek advice or discuss any changes you would like to make to your offer with Deem. Any requested changes will be subject to approval.

For a personal loan, understanding your monthly instalment and repayment schedule can help you plan your budget. For a credit card, reviewing the benefit conditions can help you understand how to make the most of its features. Deem Customer Care can help clarify these details so you can make an informed decision.

What Happens If You Decide Not to Proceed?

Contact Deem Customer Care within the applicable period on 600 525550.

When submitting your request:

1. Clearly state that you wish to cancel under the cooling-off provision and identify the relevant facility.
2. Ask for acknowledgement, a request reference and confirmation of any further steps you need to complete.
3. Request a breakdown of any refund or deduction and retain confirmation of the completed cancellation.

When Can the Cooling-Off Period Be Waived?

Where permitted, you can choose to waive the period. The CBUAE Standards require a signed written waiver containing a warning about the immediate commitment you are making.

Deem’s General Terms and Conditions state that the product will not be processed until the cooling-off period has expired unless the customer expressly waives the right. A waiver allows processing to proceed without waiting for the full period.

If the period expires without rejection or an agreed change, the contract may take effect according to its terms. Later cancellation or settlement follows the applicable product conditions.

Make an Informed Decision Before You Proceed

A cooling-off period is a useful opportunity to check that a financial product still meets your needs. Make the most of it by reviewing the commitment, confirming your deadline and raising questions early.

For a Deem Personal Loan or Credit Card, refer to the latest Key Facts Statement, Terms and Conditions and Schedule of Fees and Charges. Contact Deem Customer Care if you need help understanding the cooling-off provision or the next steps for your facility.

Frequently Asked Questions

1. How long is the cooling-off period for financial products in the UAE?

For applicable products, it is five complete business days after contract signing. A longer period may apply under other legal or regulatory requirements.

2. Can I cancel a personal loan during the cooling-off period?

Yes, where the right applies and has not been waived. Deem’s Personal Loan Key Facts Statement provides for cancellation within the stated period. Contact Customer Care before the deadline and confirm any required steps.

3. Does the cooling-off period apply to credit cards?

Yes. Deem’s Credit Card Key Facts Statement includes a five-business-day period from offer acceptance. Check your facility documents and whether you have agreed to a waiver.

4. Can I waive the 5-day cooling-off period?

Yes, where permitted. The CBUAE requires a signed written waiver warning you about immediate commitment. Read it carefully before agreeing.

5. Are fees refunded if I cancel during the cooling-off period?

Related fees are refundable, less reasonable direct costs already incurred and disclosed beforehand in writing. Ask for a breakdown of any deductions.