Back to school - Banks help out with School Fee

UAE Banks help with school fee

Rising school fees can cause a big strain on finances. A term’s can fee can range from AED 15,000 for primary years to AED 25,000 for senior years. To add to that some families could already have a big credit card bill to pay after a summer vacation. Banks in UAE, have come up with worthwhile payment plans to help parents with the school fee payment. Essentially you can use a credit card to pay the entire year’s fee in and pay it back to the Bank in monthly installments at 0% interest. As some Schools don’t accept fee payment by Credit Card, Banks are also offering the same facility by way of a cheque.

School Fee Payment Plan

  • Use Bank’s Credit Card to pay fee for the entire year and repay it back in equal monthly installments over the year.
  • If your child’s school doesn’t accept payment by Credit Card, Your Credit Card Company can issue a cheque in favour of the school for the entire year’s fee. You can repay the amount in equal installments over a period of time.

Example:

A school takes an annual fee of 42,000 in 3 terms. Consider the 3 scenarios of paying fee.

1. Cash payment by term

 

Cash

Reward / Discount

Term 1

18000

0

Term 2

12000

0

Term 3

12000

0

TOTAL

42000

0

 2. Payment using Credit Card by term

 

Credit Card

Cash back/ Reward points (worth AED)

Term 1

18000

500

Term 2

12000

500

Term 3

12000

500

TOTAL

42000

1500

 3. Payment by a cheque or pay order issued by a Credit Card Company

 

Pay Order / Cheque

School Discount

Processing fee

Added Advantage

Annual Fee

42000

5% or 2100

3% or 1260

Monthly payments at 0% interest

Net Discount: AED 840 (2100-1260) + convenience of paying monthly.

Details of Bank's Back to Shool Payment Plans:

1. Easy Payment Plan by Commercial Bank International (CBI). Simply pay your child’s school fees using the credit card and then call the Bank, to place the amount on to a 6 month Easy Payment Plan at 0% interest. EPP approval depends on the Bank’s discretion. Click here to apply for a CBI Credit Card.

2. School Fee payments offer from Emirates NBD Credit Cards

  • Convert your fee payments to a 0% Installment Plan with options of 3, 6 or 12 months* Processing fee varies from 1.5% to 4%
  • Pay school fee with Credit Card and get a 10% Cash Back on all school fee spends above AED 2,500
  • Avail the Dial-A-Cheque facility in case the school or college does not accept Credit Cards. Click here to apply for your Emirates NBD Credit Card.

3. Back to School with Mashreq Credit Cards. With Mashreq credit cards, you can now pay for your child's school/university fee and convert your transaction to a 0% Easy Payment Plan for up to 12 months.

  • Simply make your Payment to ANY school or college ANYWHERE using your Mashreq credit card and call the Bank to convert it to a 0% Easy Payment Plan for 3, 6, 9 or 12 months. Processing fee of 2% -3% applies.
  • If school doesn’t accept Mashreq Credit Card, then  you can request that Bank to send a pay order payable to the school that is repayable through a 3 or 6 month 0% installment plan. Processing fee of 3% for 3 months & 5% for 6 months will apply.
  • Pay for school fee where cards are accepted and get 5% Cashback with the Mashreq Smart Saver Credit Card or receive Salaam Rewards* on other Mashreq Credit Cards.
  • Click here to apply for a Mashreq Credit Card.

4. NBAD GEMS Credit Card from NBAD. If your child goes to a GEMS School, then NBAD GEMS Credit Card can offer you the dual benefit of paying monthly and enjoying a discount on the fee. By using the NBAD GEMS Credit Card at GEMS Schools to pay for your child’s tuition fees, you can get up to 5% p.a. discount. Besides this you also get reward points that you can redeem at many outlets. Click here to apply for a NBAD Gems Credit Card.

MoneyCamel View

These are great plans to use for parents who would like to get a rebate on the fee and at the same time break up the term fee into easy monthly payments.

Look out before you use the Card:

Cards used for monthly payment plans should not be used for revolving credit. This can lead to bigger than usual interest payments

Some Banks charge a processing fee for the monthly payment plan transaction (such as Mashreq Bank & Emirates NBD). The benefit of discount or rewards from the Card should be more than the processing fee to be paid for the transaction. example: in Case 3 of example mentioned above, if the school is not offering any discount for the whole year's tuition fee then the cost of making this a monthly transaction is AED 1260. In other words you will need to pay a processing fee of 1260 in order to get the convenience to pay the school fee as a monthly fee.

For any queries on these plans, write to our experts at expert@moneycamel.com

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