Why commission calculation is disputed — and the sources of every discrepancy
Commission discrepancies between what the referral partner / agent expects and what they receive originate from four sources. The first is the base amount: the commission is calculated on the disbursed amount, not the approved amount — and the referral partner / agent may not know about any reduction between approval and disbursement (a borrower who took a smaller loan at disbursement reduces the commission proportionally). The second is the rate tier: many commission structures are tiered — a higher rate applies above a certain monthly volume threshold, and the referral partner / agent may believe they crossed the threshold when they did not, or may not know that the institution's volume calculation excludes certain loan types. The third is hold conditions: some institutions hold a portion of the commission until the first 3 EMIs are paid — and the referral partner / agent may not have been clearly informed of this condition at onboarding. The fourth is applicable commission adjustments: a 5% applicable commission adjustments is deducted at source on commission payments above AED15,000 — referral partners / agents who did not submit Form 15G or whose PAN is not linked may have additional applicable commission adjustments applied.
The commission structure: product, tier, and volume
(HL)
1.00% of disbursed amount · Paid on disbursement · No hold condition
Home loan commissions are paid on the disbursed loan amount, not the approved amount. Commission is payable within 7 working days of disbursement. No instalment hold condition for home finance / Ijaras since the collateral provides security. applicable commission adjustments at 5% for total monthly payout >AED15,000.
(HL) — volume
1.50% on all home finance / Ijara disbursements when monthly total exceeds AED50L
The higher rate applies to the entire month's HL disbursements (not just the incremental above AED50L) when the referral partner / agent crosses the threshold. The upgrade is automatic — the referral partner / agent does not need to request it. Volume is calculated on all HLs disbursed in the calendar month regardless of approval date.
loan
1.25% of disbursed amount · 50% on disbursement · 50% after 3rd instalment paid
SME loans carry a hold condition: 50% of the commission is paid on disbursement, the remaining 50% is released when the borrower pays their 3rd instalment without default. This protects the institution against early-default cases where the referral partner / agent may have sourced a borrower who defaults immediately. The hold condition is disclosed at referral partner / agent onboarding (Module 3).
loan — volume
1.75% on all SME disbursements when monthly total exceeds AED30L
Same mechanics as the HL volume tier. The higher rate applies to the entire month's SME disbursements once the AED30L threshold is crossed. The hold condition (50% after 3rd instalment) still applies to the full rate.
Mortgage
0.75% of disbursed amount · Paid on disbursement · No hold condition
LAP commissions are flat rate with no volume tier. The lower rate reflects the larger average ticket size (LAP average disbursement: AED65L vs HL: AED38L). In absolute dirham terms, LAP commissions are comparable to HL commissions per case despite the lower percentage.
loan (PL)
2.00% of disbursed amount · 100% held until 3rd instalment paid · Highest rate, highest risk
Personal loan commissions carry a 100% hold condition — the full commission is only released after the 3rd instalment is paid, because unsecured personal finance / Murabahas have the highest early-default rate in the portfolio. The 2% rate reflects the higher yield on PL but is only realised if the loan performs in its early months.
Arjun Al-Hassan's November commission statement
Ananya K. Home loan AED42,00,000 1.50%* AED63,000 − applicable commission adjustments AED3,150 = AED59,850 Paid
Ramesh Al-Masri Home loan AED38,20,000 1.50%* AED57,300 − applicable commission adjustments AED2,865 = AED54,435 Paid
Priya N. Home loan AED40,00,000 1.50%* AED60,000 − applicable commission adjustments AED3,000 = AED57,000 Paid
Al-Farsi SME SME term AED18,40,000 1.25% AED23,000 × 50% = AED11,500 (50% held) AED11,500 paid
Ravi SE Loans SME term AED10,00,000 1.25% AED12,500 × 50% = AED6,250 (50% held) AED6,250 held
Kaveri LAP LAP AED36,00,000 0.75% AED27,000 − applicable commission adjustments AED1,350 = AED25,650 Paid
A referral partner / agent who can verify their commission to the dirham is a referral partner / agent who trusts the institution
The referral partner / agent / Channel Partner AI's commission statement is not just an accounting record — it is a trust document. When Arjun opens his December 7 statement and sees that his three home finance / Ijaras crossed the AED50L threshold and upgraded his entire month's HL commission to 1.50% — a fact he may not have tracked himself — his first reaction is not suspicion but appreciation. When he sees the SME hold amounts explained with the specific release condition, he understands the mechanic rather than resenting the deduction. An institution that explains its commission computation completely, accurately, and proactively builds a referral partner / agent network that stays — because the referral partners / agents feel they are treated as partners, not as managed vendors.