Real Estate loan policy becomes more flexible after Central Bank of UAE removed the 20% cap on Real Estate lending
In a recent announcement to the media, Mr. Al Ghurair, the Banking Federation Chief announced that the 20% cap on real-estate lending as a percentage of the total deposits of the banks would be lifted by the Central Bank of UAE.
The lending cap was lifted in lieu of a new law issued in October and a new ceiling has not been put in place yet. Mr. Al Ghurair shed some light on the advancement saying that the banking body is working with the regulator to define what real-estate actually is and what falls under it i.e. whether the loans for assets such as hospitals, schools, malls and mortgage landing would classify as real-estate loans? If in these cases the repayment source of the borrower is through their salaries?
Adding further Mr. Al Ghurair stated: “With the new law there is no restriction … it has been lifted. The 20 per cent cap [on loan exposure to banks] was prescribed in the law No 10 and that has now been abolished.”
Thus, this advancement surely looks like a positive one and would act to promote and encourage real-estate investment within the country as now people with even a slightly unsure purchasing power would be able to step ahead and take active strides towards investing in properties in the region.
Hence, We, at dxboffplan.com, are at your guard to provide with each and every information about each and every off plan property in the region. So gird up now and start your journey towards your dream home.