Business Loan in the United Arab Emirates

Business setup in Dubai: Best tips to obtain a loan in the UAE
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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 consultants. Our team of professionals will assist you with all your business needs.

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