How to Read a Key Facts Statement in the UAE

Before applying for a credit card, personal loan or another financial product, you may first consider rewards, the applicable interest or finance rate, the monthly instalment or access to funds. The product’s official documents help you assess how these features and conditions suit your requirements.

A Key Facts Statement (KFS) brings important product information together in a concise format. Knowing how to read it can help you understand your financial commitments, compare products more carefully and identify questions to ask before accepting an offer.

What Is a Key Facts Statement? 

A Key Facts Statement is a concise, user-friendly summary of the key features and risks of a financial product or service. Under the Central Bank of the UAE’s Consumer Protection Standards, it should be provided early in the sales process and presented clearly as an individual document.

Along with the Terms and Conditions, the KFS is also shared with the customer as part of the product approval communication. The customer acknowledges receipt of the KFS for the product being purchased.

The KFS provides an overview of information such as product features, applicable rates, fees, repayment requirements, risks and important customer obligations.

It is a summary, not a replacement for the full terms and conditions. Read it together with the product’s Schedule of Fees and Charges and applicable terms and conditions before making a decision.

Why Should You Read It Before Applying? 

Reading the KFS before applying can help you understand how the product’s main features and conditions may affect you. It can help you:

• Estimate the likely cost of borrowing or using the product
• Compare similar financial products using consistent information
• Check whether the repayment commitment is manageable within your monthly budget
• Understand important risks and responsibilities before you commit
• Identify conditions that may affect the way you use the product or its benefits

Do not wait until after approval or product activation to review these details. If any rate, fee, condition or example is unclear, ask the provider to explain it before accepting the product.

What Should You Look for When Reading a Key Facts Statement? 

When reviewing a Key Facts Statement, focus on the information that affects the cost of the product, your payment obligations and the conditions attached to using it.

Key areas to look for include:

• Interest, profit or finance rates: Check the applicable rate, how it is calculated and whether an APR is provided where relevant.
• Fees and charges: Identify recurring, one-time and transaction-related charges that may apply.
• Repayment requirements: Review the monthly instalment or minimum payment, repayment period and payment due dates.
• Overall cost: For borrowing products, consider the total repayment alongside the applicable rate and fees rather than focusing only on the monthly instalment.
• Early settlement and late payment conditions: Understand what may apply if you repay early, make a partial repayment or miss a payment.
• Product benefits: Check any eligibility requirements, spending thresholds, caps, exclusions or expiry conditions attached to rewards and benefits.
• Customer obligations and important warnings: Pay attention to responsibilities, restrictions and circumstances that may result in additional costs or other consequences.

These areas provide a useful starting point when reviewing a KFS. The sections below explain some of them in more detail.

Interest and Finance Charges

The KFS explains the applicable rate, the period it covers and the calculation method. Review this information alongside the APR, applicable fees and repayment example to understand how the product is priced.

For Personal Loans and Other Financing Products 

Check whether the rate is stated per month or per year and whether it is calculated on a flat or reducing balance basis.

With a reducing balance loan, interest is calculated on the outstanding principal, so the interest portion generally decreases as the principal is repaid.

The Annual Percentage Rate (APR) is a standard annualised comparison measure that includes the interest or profit payable and applicable fees.

When reviewing the APR, also consider the worked repayment example, including the loan amount, term, monthly instalment and total repayment.

For Credit Cards 

Check the monthly and annual rates, when interest begins to apply and whether different rates or conditions apply to retail purchases, cash withdrawals, instalment plans or other transaction types.

A credit card may offer an interest-free period on eligible retail transactions when the total outstanding balance is paid in full by the due date, subject to the card’s terms. Cash and cash-equivalent transactions may be treated differently, so check the applicable conditions and exclusions.

Annual Fees and Processing Fees 

A KFS can help you distinguish between recurring charges and one-time costs.

• Annual membership fee: Check how much is charged, when it is billed and whether the amount varies by card type.
• Processing fee: For a loan or financing product, check whether the fee is calculated as a percentage of the amount, whether a minimum or maximum applies and how it is charged.
• Transaction-related fees: Look for charges associated with services such as cash withdrawals, foreign-currency transactions, balance transfers, instalment plans, overlimit usage, card replacement or additional statements, where applicable.
• VAT: Confirm whether the displayed amount includes VAT or whether VAT will be added.
• Looking beyond the headline rate can give you a more complete understanding of the costs associated with the product.

Minimum Payments and Monthly Instalments 

Credit Card Minimum Payments 

The minimum payment is the least amount you are required to pay by the due date under the card’s terms. Paying it on time may prevent the account from becoming overdue, but it does not normally clear the full outstanding balance.

If you pay only the minimum amount, the remaining balance may continue to incur interest. This can increase the time and total cost required to repay the balance. Check how the minimum payment is calculated and review any repayment illustration or warning included in the KFS.

Loan Monthly Instalments 

For a personal loan, check the Equal Monthly Instalment (EMI), repayment period, first payment date, due date and repayment method.

An EMI generally includes both principal and interest, although the split between them may change over the term of a reducing balance loan.

Do not assess affordability using the instalment alone. A longer tenure may reduce the monthly payment but can increase the total interest paid. Consider both the monthly commitment and the total repayment when reviewing your options.

Early Settlement and Late Payment Charges

Early or Partial Settlement 

If you may repay a loan before the end of its agreed tenure, check how the early settlement charge is calculated, whether a maximum applies and whether partial prepayments are permitted.

Before making an early settlement, request an official settlement amount from the provider. The amount due may include the outstanding principal, accrued amounts and applicable charges.

Late or Missed Payments 

The KFS should explain the applicable charges and consequences if a payment is delayed or missed. Depending on the product and circumstances, these may include:

• Late payment or delayed payment charges
• Continued interest on the outstanding or delayed amount
• Returned direct debit or payment-related charges
• An impact on your credit history, which may affect future borrowing
• Collection activity, demand for repayment or legal action in serious or continuing cases

If you expect difficulty making a payment, contact the provider as early as possible to understand the available options.

Product Benefits and Eligibility Conditions 

Benefits can make a financial product more useful, but it is important to understand the conditions attached to them.

For a credit card, for example, check:

• Which transactions qualify for cashback, points or other rewards
• Whether minimum spending requirements or monthly caps apply
• Which transaction categories are excluded
• How rewards are calculated and redeemed
• Whether rewards or benefits have validity or expiry periods
• Whether third-party conditions apply to lifestyle or travel benefits
• Eligibility conditions may include factors such as income, employment, UAE residency, existing financial commitments and credit history.

Meeting a stated minimum requirement does not guarantee approval. The final decision remains subject to the provider’s eligibility criteria and credit assessment.

Questions to Ask Before Accepting a Product 

If anything in the KFS is unclear, consider asking the provider:

• What is the overall cost of the product?
  Understand the applicable rate, APR where relevant, fees and total repayment rather than looking only at a promotional rate or monthly payment.
• Can the applicable rate or charges change?
  If so, ask what may cause a change and how you will be informed.
• Are there different conditions for certain transactions?
  This can be particularly important for credit card cash withdrawals, instalment transactions and other transaction types.
• Are any additional products or services included?
  Check whether insurance or another add-on carries a separate cost and whether it is optional.
• Are there any exclusions or restrictions I should know about?
  Make sure you understand circumstances that could affect rewards, benefits or the way the product can be used.
• Where can I find the complete product terms?
  Refer to the latest KFS, Schedule of Fees and Charges, offer documents and applicable terms and conditions.

Where to Find Deem’s Key Facts Statements 

You can access Deem’s current Key Facts Statements on the Deem website. The page includes documents for Credit Cards, Personal Loans, Easy Payment Plans, Easy Cash Easy Payment Plans, Salary Advance, Balance Transfer, Merchant Loans and Quick Merchant Loans.

Before applying, read the relevant KFS alongside Deem’s Schedule of Fees and Charges and Terms and Conditions.

Use the latest versions available through Deem’s official website, as rates, fees, features and conditions may be updated in accordance with the applicable terms and regulatory requirements.

If any information is unclear, contact Deem Customer Care on 600 525550 or email customercare@deem.io before accepting the product.

Final Thoughts 

A Key Facts Statement can help you understand the key financial commitments and conditions associated with a product before you apply.

Take time to read the relevant KFS alongside the Schedule of Fees and Charges and full terms and conditions. Consider whether the product’s costs, repayment requirements and features suit your financial needs before making a decision.

Frequently Asked Questions (FAQs) 

1. Is a Key Facts Statement the same as a contract?

No. A KFS summarises important information about the financial product. The applicable terms and conditions and other contractual documents contain the complete terms governing the product.

2. Does acknowledging a KFS mean my application is approved?

No. Acknowledging receipt of a KFS does not by itself guarantee approval. Approval remains subject to the provider’s eligibility requirements, verification process and credit assessment.

3. What is the difference between an interest rate and APR?

The interest rate is the rate charged on the borrowed amount according to the product’s calculation method. APR is an annualised comparison measure that also takes applicable fees included in its calculation into account.

4. How can I use a KFS to compare financial products?

Compare similar factors across each KFS, such as the applicable rate, APR where relevant, fees, repayment requirements, total repayment and important product conditions. Avoid comparing products based on one feature alone.

5. What should I do if I do not understand something in the KFS?

Ask the provider to explain the relevant term, cost or calculation before accepting the product. You can also refer to the applicable terms and conditions and Schedule of Fees and Charges for further information.

6. Can fees or product conditions change?

They may change where permitted under the applicable terms and regulatory requirements. Refer to the latest official product documents and review how any changes will be communicated.

7. Where can I download Deem’s Key Facts Statements?

Deem’s current Key Facts Statements are available on the Deem Key Facts Statement page. Select the document that corresponds to the product you are considering.

Important information: Terms and conditions apply. Product approval is subject to Deem’s eligibility criteria and credit assessment. Rates, fees and benefits may vary. Review the latest Key Facts Statement, Schedule of Fees and Charges and applicable terms and conditions before applying.