Business | Property
Abu Dhabi raises limit on Emirati home loans
President His Highness Shaikh Khalifa Bin Zayed Al Nahyan, in his capacity as the Ruler of Abu Dhabi, has issued a law restructuring the statutes regulating housing loans for citizens in the emirate.
- WAM
- Published: 00:04 May 28, 2008
Abu Dhabi: President His Highness Shaikh Khalifa Bin Zayed Al Nahyan, in his capacity as the Ruler of Abu Dhabi, has issued a law restructuring the statutes regulating housing loans for citizens in the emirate.
The Law No 9 (Year 2008) is meant to support the welfare of Emiratis and raises the maximum loan limit from the Private Loans Authority from the current Dh1.2 million to Dh2 million, repayable within 30 years in equal installments with no interest.
Those who have taken their loans earlier may also benefit if they have not started building their homes or if their homes are still under construction.
The law allows Emiratis to use the loan to buy a house, provided the house is not sold or the ownership changed until the loan is paid off.
Debtors will benefit from waiving of 25 per cent of the loan's value once the house is built and water and electricity are connected. This also applies to debtors who have built their houses and still have outstanding dues.
The new law also gives the debtors repayment exemptions, which range from 15 to 25 per cent of the total loan.
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