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VAT based SME loans from Emirates NBD in UAE

SME Loan

Its been a year since VAT is launched in UAE. There are different categories in VAT like zero-rated, exempted and taxable, and the category assigned depends on the business type. According to the Federal Tax Authority(FTA), since the launch of VAT in UAE in 2018 to date, there are 296,000 businesses registered with them and 95% of the companies in Dubai are Small and Medium Enterprises(SME) only.

From the latest update, Emirates NBD launched a new product to provide loans for Small and Medium Enterprises in UAE. The loan amount is based on the VAT.  

What is VAT based SME loan?

Small and Medium Enterprises which were included in the VAT will be eligible for a new SME loan in Emirates NBD to improve their business. The loan amount depends on the VAT paid so far. Business owners of the SME have to provide their tax returns documents in order to be eligible for the SME loan.

Maybe interested: Things to check while Getting a Business Loan in the UAE

Why VAT based SME loan?

Small and Medium Enterprises are given this financial assistance to improve their businesses which will foster the development of SME sectors for the most awaited Dubai expo 2020.  

Even though the VAT rate is UAE is 5% which is less compared to other nations, some of the well-acclaimed banks taking such initiation to encourage the SME sectors is really appreciated.
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