ID :
18907
Thu, 09/11/2008 - 14:07
Auther :
Shortlink :
https://oananews.org//node/18907
The shortlink copeid
Emirates NBD to finance homes in Abu Dhabi
Dubai, Sept 11, 2008 (WAM) - Emirates NBD, the largest bank in the UAE in terms of assets, launched its home loan financing scheme in Abu Dhabi on Tuesday to tap the robust real estate market according to a report in ‘Gulf News.’
The bank is offering mortgages for Abu Dhabi-based properties with an interest rate linked to the Emirates Interbank Offered Rate (Eibor), which stands at 3.1 per cent.
"The interest on mortgages starts at 4.99 per cent and varies in accordance with the risks associated," said Suvo Sarkar, the bank's executive vice-president.
Emirates NBD's mortgage portfolio amounts to Dh5 billion, the largest among UAE banks, according to Sarkar.
"This represents less than five per cent of our lending portfolio and 20 per cent of our consumer lending book, and we expect it to grow aggressively to account for one-third of our total lending within three to five years," he added.
Ali Mohammad Ali, the bank's regional manager for Abu Dhabi and Al Ain, said: "Properties in Abu Dhabi have a very good potential for appreciation, and we have signed agreements with Aldar Properties and Sorouh Real Estate to finance purchases in their respective developments."
"These reports can reflect sometimes the interests of a specific institution issuing them, where we find contradicting reports only a few months earlier," he added, explaining that speculation will tend to disappear in two years owing to the new regulations introduced in Dubai, as well as new laws being considered in Abu Dhabi.
The mortgages provided for property in Abu Dhabi covers UAE and GCC nationals, as well as expatriates residing in the country.
The maximum amount and period is set at Dh10 million for 25 years.
The bank is offering mortgages for Abu Dhabi-based properties with an interest rate linked to the Emirates Interbank Offered Rate (Eibor), which stands at 3.1 per cent.
"The interest on mortgages starts at 4.99 per cent and varies in accordance with the risks associated," said Suvo Sarkar, the bank's executive vice-president.
Emirates NBD's mortgage portfolio amounts to Dh5 billion, the largest among UAE banks, according to Sarkar.
"This represents less than five per cent of our lending portfolio and 20 per cent of our consumer lending book, and we expect it to grow aggressively to account for one-third of our total lending within three to five years," he added.
Ali Mohammad Ali, the bank's regional manager for Abu Dhabi and Al Ain, said: "Properties in Abu Dhabi have a very good potential for appreciation, and we have signed agreements with Aldar Properties and Sorouh Real Estate to finance purchases in their respective developments."
"These reports can reflect sometimes the interests of a specific institution issuing them, where we find contradicting reports only a few months earlier," he added, explaining that speculation will tend to disappear in two years owing to the new regulations introduced in Dubai, as well as new laws being considered in Abu Dhabi.
The mortgages provided for property in Abu Dhabi covers UAE and GCC nationals, as well as expatriates residing in the country.
The maximum amount and period is set at Dh10 million for 25 years.
