Business Loan in the United Arab Emirates

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.