Dubai: Beneficiaries of home loans granted by the Mohammad Bin Rashid Housing Establishment (MRHE), will have certain percentages of the loan waived if they repaid the loan before its maturity date.

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in his capacity as Ruler of Dubai, has issued a decree waiving certain percentages of amounts if the borrower repaid a loan before its maturity date.

Decree No. 22 for the year 2011, stipulated that if a beneficiary of home loans granted by the Mohammad Bin Rashid Housing Establishment (MRHE) reimburses the loan amount before the period of its maturity, he will be exempted from repaying the full amount, and the waivers will be calculated as per the table issued as the annexure to the decree.

Article 2 of the decree stipulated that for purposes of calculating the rates of the exemption set forth in the table, part of a year will not be considered as a full year to determine the remaining period for loan repayment.

Article 3 of the decree states that to become eligible for the waiver, a beneficiary should repay the remaining amount in a single installment after deducting the percentage of concession and should prove that the construction of the house has been completed and that he owns the home. It also fixes Dh300,000 as the maximum amount of exemption.

Article IV stipulates that premiums which the borrower was late to repay will not be calculated as part of the single installment of full repayment for the purpose of calculating the percentage of waiver.

According to Article V, the board of directors will revise the percentages in every three years or whenever there arises the need to amend them. The decree will annul all provisions existing in any laws that contradict with it, and will be published in the official gazette.