UAE is an encouraging land for entrepreneurs to start their business. Many of them come and try out their luck in this land of gold. For anyone who wants to set up a business abroad, the first place that comes to the mind is UAE.
UAE is a country that is stable in terms of finance. So providing financial support i.e business loan in UAE for the entrepreneurs is not so tough for banks.
Eligibility for a Business Loan in UAE
This is the important thing one has to consider before approaching a bank. Because not all banks would provide a loan as per your requirement. Each bank has its own eligibility criteria. The following below are the common terms that all the banks consider.
- Business should be in 1 year of operation at least
- If your organization is a branch or subsidiary of an offshore company then getting a loan would be considered easy.
- Annual turnover of AED 1 million at least
- Limited liability company
- Sole Proprietorship/Partnership
In UAE banks provide business different kinds of business loans called SME loans. Which means Small and Medium Enterprises loans. These are for the small and medium scale business organizations where they provide loans for lower interest rates comparatively.
Documents required for Business Loan in UAE
Be it a small business or a large industry, getting a business loan in UAE is very easy if you have genuine/valid documents. Speaking of the documents, the most important and mandatory document is Trade Licence.
Trade Licence
The trade license is a permit provided by the government of UAE to the investors giving permission to run the business. There are different trade licenses for every trade, which depends on the category of your business. The trade license fees would be around AED 3,900 to AED 183,000. Most of the businessmen prefer a general trade license which would be beneficial to run the business of all commodities. The trade license is highly beneficial; not only for a business loan but also for other loans in UAE like Personal loan, Home loan, Auto loan. A trade license is an important document for self-employed individuals.
Apart from the trade license, other documents which are mandatory for a business loan in UAE are:
- Business agreement (if under partnership)/ Power of attorney
- Passport
- Bank statements
- Emirates ID
Benefits of a Business Loan in UAE
There are many benefits that banks in the UAE provide for business loans apart from the SME loans.
- Free credit cards
- Free life insurance cover
- Business loans which follow Shariah complaints
- Interest rates in UAE can be chosen between fixed rates or reducing rates
- Security for the loan need not be provided
Popular banks for business loans in UAE
- Abu Dhabi Commercial Bank(ADCB) Business Loans
- RAK Bank Business Loans
- United National Bank Business Loans
- United Arab Bank Business Loans
- CBD Business Loans
One need not worry about financial requirements to start a business when there are several banks in UAE to provide the best business loans with various benefits. All you need is valid and genuine documents and a strong will to do a business.
About the author
Nikitha is a Senior Analyst at MyMoneySouq.com. She has been writing about personal finance, credit cards, mortgage, and other personal finance products in the UAE. Her work on Mortgage loans has been featured by the GulfNews and other popular Financial Blogs in the UAE.
