SynopsisDubai will introduce a new rent payment service in September. Tenants can spread annual rent over twelve months without any interest. A local bank will pay landlords the full rent upfront. This initiative aims to provide greater housing flexibility for residents. The Dubai Land Department is developing the final framework for this service.iStockRepresentative ImageDubai is set to launch a “Rent Now, Pay Later” service in September that will allow tenants to spread annual rent payments over up to 12 months without interest, according to a report by Emarat Al Youm. The initiative is being developed by the Dubai Land Department (DLD) in partnership with a local bank.Under the proposed model, the participating bank would pay the landlord the full annual rent upfront after a tenant selects a residential property. The tenant would then repay the bank through flexible monthly installments over a period of up to 12 months, with no interest.Also Read: Travelling to Sri Lanka? Indian tourists can now save 20% on PickMe rides with UPI paymentsThe initiative is aimed at giving tenants greater flexibility in managing rental payments and improving access to housing.The final framework is still under development. Details on eligibility, applications, financing, repayments and the roles of tenants, landlords and the participating bank are expected to be announced when the service is officially launched.If introduced in its proposed form, the mechanism could make Dubai the first city in the world to integrate such a payment model into its rental market, according to the report.Also Read: Global banks are pulling back credit cards once prized by rich IndiansThe planned service follows the DLD’s ‘Flexi Rent’ initiative, which was launched on June 23. The programme expanded rental payment options to include monthly, quarterly and six-monthly instalments.The earlier initiative also offered incentives and packages from participating entities, with the aim of supporting rental market stability and providing housing options suited to different sections of the community. (Join our ETNRI WhatsApp channel for all the latest updates)...moreElevate your knowledge and leadership skills at a cost cheaper than your daily tea.Subscribe Now