Dubai, Jul 16th, 2011 (WAM) -- Vice-President and Prime Minister of UAE His Highness Sheikh Mohammed bin Rashid Al Maktoum, 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/Year 2011 stipulated that if a beneficiary of Home Loans granted by the Mohammed 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 decreeArticle 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 AED 300,000 as the maximum amount of exemption. Article IV stipulates that premiums 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.Copyright Emirates News Agency (WAM) 2011.
