- July 5, 2021
- Posted by: admin
- Categories: Banks, Loans
The UAE is the land of opportunities for entrepreneurs to start their businesses. anyone who want to establish business outside of their country, the UAE us the first place comes in their mind. The UAE is an international investment destination because of its sustainable financial system. Providing financial support to entrepreneurs in the form of business loans is not a tough task for banks in Dubai. If you are looking for an SME business loan in UAE then, here we present you with the important features that will help you.
Business loans are highly in demand among small and medium industries, commercial business organizations, and even entrepreneurs to name a few. Almost all key financial institutions and banks in Dubai have commercial financial solutions available to them. There are several options for a business loan in UAE and you have to very careful while choosing the one that suits your needs for that matter, you need to ask what you require to get this loan; it was processed fast and smoothly.
First of all, you require to figure out your exact needs before searching for the best business loan rates in Dubai. This is wise to keep a clear image of the loan amount that you will require and also bear in mind the eligibility standards for all those types of loans. Since there are many types of business loans to help businesses to accomplish their specific needs, you also have to understand what you actually require – is it money for your business or support operating costs or to purchase new equipment or fund to pay off other debts. Loans are taken for different purposes and they also come with different eligibility criteria. You should have a clear idea of these things before applying for an SME business loan in UAE.
Applying for SME Business Loan in UAE
It is quite easy to get an SME business loan in UAE with several banks and credit companies providing a variety of packages. If you want to get the best out of an SME business loan keep in mind the 5 Cs of your credit which are capital, character, capacity, collateral, and any other ‘condition’ from the lender. As easy or convenient as they can be obtained, that does not make them risk-free.
If the local bank doesn’t provide your SME business loan in UAE, you can apply for it at the Small Business Association (SBA). SBA loans are backed by the government. They are a good option for SME businesses but the risk is that if you are unable to pay back, the government will hit you hard. Since non-payment has the worst consequences, people usually avoid it.
Documents Required for SME Business loan in UAE
The necessary documents required for SME business loan in UAE are mentioned below:
• Application form
• Trade license copy
• Incorporation documents as applicable means power of attorney, Memorandum of Association or Article of Association, Partnership agreement.
• Last 12 months bank statement
• All partners valid passport with residence visa page for expatriates
• All documents are required to be valid at the time of evaluation
Eligibility Criteria for SME Business loan in UAE
You have to know whether you are eligible for a bank loan or not. Banks set interest rates for a business loan. Interest rates are typically low for SMEs. SMEs have a great contribution to UAE’s economy. Recognizing their importance, banks and other financial institutions are giving business loans to SMEs.
The criteria for SMEs to get a business loan are not fixed entirely. It depends on.
• Business of the clients and the industry they are operating in
• Historical performance
• Financing or risk alleviation needs vs. what has been already sourced
• Plan of the client regarding future of business
Amongst all the factors in determining a loan amount, very crucial is turnover. A business’s bank account and audited financial statements depict the turnover of the company.
Benefits of SME Business loan in UAE
Apart from business loans, other benefits provided by banks involve:
• Free credit cards
• Free life insurance cover
• Sharia-compliant business loan
• Option to select between fixed interest rates or reducing rates of interest
• No need to offer security for the loan.
Getting an SME business loan in UAE is easy but sometimes it sounds tricky procedure. You must require to get the right license and prepare all the necessary documents for loan approval. Banks in the United Arab Emirates place strict adherence to the rules. If there is any discrepancy between business activity and license, the bank would reject your loan application. To avoid this, contact the best loan brokers in UAE, we will guide you correctly in obtaining a loan for your business. Visit Taskmaster Commercial brokers in Dubai, UAE for more information.
Also read, How To Get Company Loans In Dubai