The banks in the United Arab Emirates offer a huge range of banking facilities to business owners in terms of accounts, and trade finance as well as loans, If you are looking to request banking facilities like a bank loan, to grow your business. Here are the different steps and tips to apply for a bank loan in the United Arab Emirates and get banking facilities:
Tip 1: Check If You Are Eligible To Apply For a Business Loan
SME’s in Dubai are eligible for a business loan, but only if they meet some criteria. The specific requirements are different from bank to bank:
- The business must be running for at least 2 years
- Audit report is required from the approved auditor
- Minimum annual turnover (Vary from bank to bank)
- Business or personal bank statements for the last 6 to 12 months of the owners
Tip 2: Select the Right Type of Loan
You can consider various types and amounts of business loans. Below we break down the benefits of 4 key types of business loans:
Standard Business Loan
- Fixed monthly repayments over an extended period
- Payment terms are typically fixed unless the loan is under a variable rate
Friends and relatives Loan
- Directly approaching friends and family to request a loan
- Payment terms are more flexible and can be amended easily
- The risk of losing relationships over the repayment
Credit Card Loan
- In the form of advance funds through a credit card
- Typically charges very high interest rates
Tip 3: Document preparation and submission
Preparing the necessary documents properly requested by the bank to get a business loan in advance can ease to process of loan requests.
Here are the common documents required by banks in Dubai to apply for a bank loan:
- Business bank statements from the past 6-12 months
- Personal bank statements of the company owners
- Credit Ratings and Reports from
- Bank application signed by the authorized signatory:
- Legal company documents: Original documents
- Copy of loan applicant’s passport, visa and Emirates ID copies
- Audit report from approved auditors list (last 2 years)
- The bank may ask for additional documents like:
- Applicant proof of residence: inside and outside of the UAE ( Ejari and Utility bill)
- Proof of business transactions (Invoices, bill of lading … etc.)
- VAT Certificate if the company is registered with the Federal Tax Authority
- Audit Report from approved auditors
- List of employees obtained from the Ministry of Labor
If you want a faster business loan request in Dubai Free Zones, reach out to FreeZoneMarket.ae consultants. Our team of professionals will assist you with all your business needs.
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