Ujrah, an Islamic banking concept, is defined as the entitlement of a cardholder to certain services, benefits and privileges based on a specified fee. Using this concept, CIMB Islamic Bank has developed the CIMB Islamic MasterCard Gold which offers Shariah complaint credit card services to cardholders.
One of the benefits linked to CIMB Islamic MasterCard Gold credit card is the bank’s reward programme. One bonus point will be awarded to cardholders with every RM1 of retail spending charged to this credit card anywhere in Malaysia or overseas.
The bonus points accumulated can be used to redeem a wide variety of rewards. Some of the items up for grabs include health & lifestyle products, home essentials, kitchen appliances, dining utensils, outdoor gadgets and educational toys for children. Cardholders can also opt for Enrich Miles or government service tax redemption.
In addition, this reward programme also allows cardholders to use the bonus points earned to pay for their purchases at selected merchants. The conversion rate is 200 bonus points for RM1. This way, cardholders can save more.
Yearly Facility Charges
Since Shariah prohibits the acceptance of interest for loans of money, the CIMB Islamic MasterCard Gold credit card does not have an annual percentage rate ( APR) for outstanding card balances. Instead, the bank charges a Yearly Facility Charges (YFC).
YFC is essentially a provision for the maximum amount of interest that cardholders can be charged in one year if they choose to pay only the minimum monthly payment of their outstanding card balances. The YFC for CIMB Islamic MasterCard Gold is set at RM7200.
While this YFC is a large sum, customer service officers at the bank have clarified that cardholders do not have to pay the amount upfront. However, if cardholders do not settle their outstanding card balance in full, the bank will then charge a payable facility charges (PFC) on the unpaid amount for the month. The total PFC for the year must not exceed the YFC.
This means that if cardholders settle their card balances in full every month, they will not be charged any PFC and subsequently may receive a full waiver from the bank on the annual YFC. Hence, this unique feature of the CIMB Islamic MasterCard Gold will be a good incentive for cardholders to fully settle their card balances and stay debt-free.
CIMB Islamic MasterCard Gold also provides comprehensive protection for cardholders who like to travel. They can enjoy complimentary Takaful travel accident insurance coverage of up to RM500000 when cardholders charge their full air fare to this credit card.
Moreover, this insurance policy also includes travel inconvenience coverage for delayed flights, missed flight connections and luggage loss or delay. The amount of coverage can go up to RM1000 for cardholder and RM2000 for each family.
No Annual Fee
Besides being Shariah compliant, CIMB Islamic MasterCard Gold credit card is also free for life. With the minimum annual income of RM24000 and no annual fee, this credit card is easily accessible and a breeze to maintain.