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UBL launches new mortgage financing

DUBAI — United Bank Limited (UBL) yesterday launched 'BAITNA,' the latest mortgage loan product for financing freehold property in the UAE in order to capture the booming Dh30 billion home mortgage finance market.

The new loan product was announced at a Press conference addressed by Wajahat Husain, Head of Middle East, UBL, who highlighted the bank's role in the home finance market.

UBL was established in Abu Dhabi in 1967 and currently the bank has a network of eight branches in Abu Dhabi, Dubai, Sharjah and Al Ain.

Wajahat Husain said: "The real estate sector is a significant contributor to the GDP of UAE and there is huge growth in this sector through the launch of numerous prominent projects. In line with this vision, UBL offers BAITNA to residents and non-residents of UAE, both salaried and self employed. For salaried individuals, the minimum salary is Dh7,000 per month without the requirement of salary transfer and for self employed, profitability and sales growth for the past two years."

He added: “BAITNA offers financing upto 80 per cent of the property value for a maximum tenor of 15 years at competitive rates. UBL will be financing approved projects of Emaar, Nakheel and Dubai Properties besides selected projects of private developers. ’’

UBL, in the UAE recorded $350 million deposits and $9 billion as profits after tax in 2004 and the bank continues to serve the community by facilitating in meeting its financial needs.

The launch of BAITNA is another step towards completion of the product suite for the consumer bank.

Husain told Khaleej Times: "Although, the home loan market is dominated by Amlak and Tamweel, there is space for other banks to grow as new projects are announced every month and nationals as well as expatriates are looking for various new loan options available in the market. Moreover, our products are very competitive and rate of interest is only 3.5 per cent for nationals as well as expatriates."

He also added that loans will be sanctioned within 48 hours once the formalities are completed and the bank will provide maximum loan amount of Dh 3million for pre-cleared projects of private developers.

According to an analyst, the growth of the home finance industry has been exponential, reflecting the mega projects that have transformed the skyline of Abu Dhabi, Dubai and Sharjah.

New banks, including foreign banks have entered the market with product offerings as the UAE's property market is booming and banks have discovered a profitable lending market.

UBL is committed to providing a full range of retail financial services/products to its customers. The bank also offers competitive personal loan, revolving overdraft and credit card products with its presence in UAE, Bahrain, Qatar, Yemen, Oman, Iran, USA, UK, Switzerland and Pakistan through a network spanning over 1,100 branches.

The bank provides customers with direct access to a comprehensive range of consumer, commercial, corporate, investment and treasury products and banking facilities backed by quality service and delivery based on latest state-of- the-art IT platform.