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29 March 2024

Ajman Bank offers end-user financing under Tayseer

Ajman Bank. (FILE)

Published
By Parag Deulgaonkar

Ajman Bank has become the first bank to offer end-user financing for the 40 projects registered under Tayseer initiative of Dubai Land Department.

Mohamed Amiri, Deputy CEO, Ajman Bank, told Emirates 24|7: “We have agreed with the Dubai Land Department to initially start with end-user financing and then move over to offer project financing at a later stage for the Tayseer registered projects.”

Under the agreement, the bank will make home finance available to UAE nationals and expatriate residents with a minimum monthly income of Dh10,000. The finance-to-value ratio will be up to 80 per cent  with the maximum finance amount being Dh4 million. The repayment tenure will be of up to 20 years.

“Home financing is a core part of our bank’s business. The agreement will have a positive impact on the UAE’s overall economic climate by increasing liquidity and boosting the Dubai real estate sector. By accrediting ourselves with Tayseer initiative, we look to grow our home financing business organically in Dubai.”

Ajman Bank will be offering finance options to investors, who have paid certain cash for a unit, but now are looking for home financing.

“We have strict evaluation criteria and thoroughly follow our credit risk guidelines.”

Asked about the profit rate, Amiri said: “Our profit rate is standard across the UAE and currently hovers between eight and 10 per cent. We are already aggressively campaigning our new home finance offer, where the profit rate is between 6.99 per cent and 7.49 per cent.”

In a press statement, Sultan bin Butti bin Mejren, Dubai's Director General, said: “We are delighted to enroll Ajman Bank as part of the Tayseer programme. This agreement is a further indication of the improving property market in Dubai and will encourage investors, boosting the real estate sector.”

Earlier this month, this website reported that projects in Dubai that are facing no issues with buyers and moving forward as per the construction plans are being considered for the Tayseer programme. Five banks have joining hands with the Dubai Land Department to fund selected projects.

A total of 40 projects within the Dubai Marina, Business Bay, and Jumeirah Lake Towers have been short listed in the first phase of the initiative launched by the department to offer developers and investor’s confidence and security of completion of the project.