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Business Loan in UAE

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Business Loans Interest Rates in
UAE

Minimum Salary

Interest Rate

Loan Amount

Reducing Rate

Select Bank

Annual Turn Over

Tenure In Months

Interest/Profit Rate

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CLEAR

reducing rate Reducing Rate

15%

maximum amount Maximum Loan

AED 3000K

years in business Time In Business

1 Months

Features

  • Length of Business should be 12 months
  • 6 months turnover required greater than or equal to AED 600K
  • To hold a POS terminal for a minimum of 6 months
Apply Now

Features

  • Length of Business should be 12 months
  • 6 months turnover required greater than or equal to AED 600K
  • To hold a POS terminal for a minimum of 6 months
  • Collateral free loan
  • Low-interest rate
  • Reducing rate starts from 15% - 17%
  • Provides maximum finance amount of up to AED 3 Million
  • Repayment period is up to 60 months

Benefits

  • Collateral Free loan
  • High loan amounts of up to AED 3 million
  • Flexible repayment periods of up to 60 months
  • Minimum documentation

 

flat rate Flat Rate

9.92%

minimum amount Minimum Loan

AED 25K

reducing rate Reducing Rate

18%

maximum amount Maximum Loan

AED 500K

early settlement fee Early Settlement Fee

5%

minimum annual turnover Min Annual Turnover

AED 900K

years in business Time In Business

12 Months

tenure Tenure

48 Months

approval time Approval Time

5 Days

processing fee Processing Fee

2%

Benefits

  • Finance amount is high
  • Long and flexible repayment period is provided by bank
  • A dedicated relationship manager guides you throughout the process
Apply Now

Features

  • The reduction rate and the flat rate is 18% and 9.92%. This denotes that the computation done was a division of the reduction rate by 1.814
  • Provides maximum finance amount of up to AED 500,000
  • Early settlement fee is 5% of the finance amount
  • Processing fee is 2% of the loan amount
  • Repayment period is up to 48 months
  • Provides minimum finance amount of up to AED 25,000
  • 1 years minimum length of business is required to qualify for this finance
  • Minimum annual sales turnover of AED 900,000 is needed to apply for this finance
  • You need not have a bank account with SME to apply for this finance
  • After successful submission of documents, within next 5 working days the bank will approve the loan

Benefits

  • Finance amount is high
  • Long and flexible repayment period is provided by bank
  • A dedicated relationship manager guides you throughout the process
  • The documentation process is simple and easy

View details on bank page

reducing rate Reducing Rate

7%

maximum amount Maximum Loan

AED 25000K

years in business Time In Business

1 Months

Features

  • Length of Business should be 1year
  • 6 months turnover required more than or equal to 2 Million
  • Avail higher loan amounts with Equity release, Refinance and Take-over options
Apply Now

Features

  • Length of Business should be 1year
  • 6 months turnover required more than or equal to 2 Million
  • Avail higher loan amounts with Equity release, Refinance and Take-over options
  • Avail Trade and Working Capital facility on your property
  • Reducing rate is 7% to 9%
  • Provides maximum finance amount of up to AED 25 Million

Benefits

  • Avail higher loan amounts with Equity release, Refinance and Take-over options
  • Dedicated Relationship Manager
  • Provides phone banking, mobile banking and net banking

 

flat rate Flat Rate

6.06%

minimum amount Minimum Loan

AED 100K

reducing rate Reducing Rate

11%

maximum amount Maximum Loan

AED 3000K

early settlement fee Early Settlement Fee

1.5%

minimum annual turnover Min Annual Turnover

AED 2000K

maximum annual turnover Max Annual Turnover

AED 40000K

years in business Time In Business

24 Months

tenure Tenure

4 Months

approval time Approval Time

5 Days

processing fee Processing Fee

2%

Benefits

  • Finance amount is high
  • Long and flexible repayment period is provided by bank
  • A dedicated relationship manager guides you throughout the process
Apply Now

Features

  • The reduction rate and the flat rate is 11% and 6.06%. This denotes that the computation done was a division of the reduction rate by 1.815
  • Provides maximum finance amount of up to AED 3,000,000
  • Early settlement fee is 1.5% of the finance amount
  • Processing fee is 2% of the loan amount
  • Repayment period is up to 120 days
  • Provides minimum finance amount of up to AED 100,000
  • 2 years minimum length of business is required to qualify for this finance
  • The maximum annual turnover limit to be eligible for this finance is AED 40,000,000
  • Minimum annual sales turnover of AED 2,000,000 is needed to apply for this finance
  • You need to have a bank account with CBD to apply for this finance
  • After successful submission of documents, within next 5 working days the bank will approve the loan

Benefits

  • Finance amount is high
  • Long and flexible repayment period is provided by bank
  • A dedicated relationship manager guides you throughout the process
  • Documentation process is simple and easy
  • Provides business credit cards for loan amount up to AED 3,000,000

View details on bank page

flat rate Flat Rate

11.58%

minimum amount Minimum Loan

AED 100K

reducing rate Reducing Rate

21%

maximum amount Maximum Loan

AED 2500K

minimum annual turnover Min Annual Turnover

AED 900K

years in business Time In Business

24 Months

tenure Tenure

60 Months

approval time Approval Time

2 Days

processing fee Processing Fee

2%

Benefits

  • Finance amount is high
  • Long and flexible repayment period is provided by bank
  • Along with this scheme free Keyman Takaful protection is provided
Apply Now

Features

  • The reduction rate and the flat rate is 21% and 11.58%. This denotes that the computation done was a division of the reduction rate by 1.813
  • Provides maximum finance amount of up to AED 2,500,000
  • Processing fee is 2% of the loan amount
  • Repayment period is up to 60 months
  • Provides minimum finance amount of up to AED 100,000
  • Minimum annual sales turnover of AED 900,000 is needed to apply for this finance
  • After successful submission of documents, within next 2 working days the bank will approve the loan

Benefits

  • Finance amount is high
  • Long and flexible repayment period is provided by bank
  • Along with this scheme free Keyman Takaful protection is provided
  • Documentation process is simple and easy

View details on bank page

flat rate Flat Rate

9.37%

minimum amount Minimum Loan

AED 50K

reducing rate Reducing Rate

17%

maximum amount Maximum Loan

AED 2000K

early settlement fee Early Settlement Fee

5%

minimum annual turnover Min Annual Turnover

AED 1000K

maximum annual turnover Max Annual Turnover

AED 150000K

years in business Time In Business

24 Months

tenure Tenure

36 Months

approval time Approval Time

7 Days

processing fee Processing Fee

2%

Benefits

  • Finance amount is high
  • Long and flexible repayment period is provided by bank
  • Pre approved credit card is provided along with this scheme
Apply Now

Features

  • The reduction rate and the flat rate is 17% and 9.37%. This denotes that the computation done was a division of the reduction rate by 1.814
  • Provides maximum finance amount of up to AED 2,000,000
  • Early settlement fee is 5% of the loan amount
  • Processing fee is 2% of the loan amount
  • Repayment period is up to 36 months
  • Provides minimum finance amount of up to AED 50,000
  • The maximum annual turnover limit to be eligible for applying for this finance is AED 150,000,000
  • Minimum annual sales turnover of AED 1,000,000 is needed to apply for this finance
  • It is a requirement to have an account in this bank to apply for a business loan
  • After successful submission of documents, within next 7 working days the bank will approve the loan

Benefits

  • Finance amount is high
  • Long and flexible repayment period is provided by bank
  • Pre approved credit card is provided along with this scheme
  • Documentation process is simple and easy

View details on bank page

reducing rate Reducing Rate

21%

maximum amount Maximum Loan

AED 3000K

years in business Time In Business

1 Months

Features

  • Length of Business should be 1 year
  • 12 months turnover required greater than or equal to AED 600K
  • Collateral free loan
Apply Now

Features

  • Length of Business should be 1 year
  • 12 months turnover required greater than or equal to AED 600K
  • Collateral free loan
  • Express service available
  • Reducing rate is 21% to 25%
  • Maximum loan amount provided is AED 3 Million

Benefits

  • Collateral Free
  • High loan amounts of up to AED 3 million
  • Flexible repayment periods of up to 60 months
  • Minimum documentation
  • Provides Net banking, phone banking and mobile banking services

 

flat rate Flat Rate

9.92%

minimum amount Minimum Loan

AED 50K

reducing rate Reducing Rate

18%

maximum amount Maximum Loan

AED 1500K

early settlement fee Early Settlement Fee

5%

minimum annual turnover Min Annual Turnover

AED 1200K

years in business Time In Business

12 Months

tenure Tenure

48 Months

approval time Approval Time

3 Days

processing fee Processing Fee

2%

Benefits

  • Finance amount is high
  • Long and flexible repayment period is provided by bank
  • A dedicated relationship manager guides you throughout the process
Apply Now

Features

  • The reduction rate and the flat rate is 18% and 9.92%. This denotes that the computation done was a division of the reduction rate by 1.814
  • Provides maximum finance amount of up to AED 1,500,000
  • Early settlement fee is 5% of the finance amount
  • Processing fee is 2% of the loan amount
  • Repayment period is up to 48 months
  • Provides minimum finance amount of up to AED 50,000
  • 1 years minimum length of business is required to qualify for this finance
  • Minimum annual sales turnover of AED 1,200,000 is needed to apply for this finance
  • You need not have a bank account with Emirates Money bank to apply for this finance
  • After successful submission of documents, within next 3 working days the bank will approve the loan

Benefits

  • Finance amount is high
  • Long and flexible repayment period is provided by bank
  • A dedicated relationship manager guides you throughout the process

View details on bank page

flat rate Flat Rate

8.82%

minimum amount Minimum Loan

AED 250K

reducing rate Reducing Rate

16%

maximum amount Maximum Loan

AED 1500K

early settlement fee Early Settlement Fee

5%

minimum annual turnover Min Annual Turnover

AED 3000K

maximum annual turnover Max Annual Turnover

AED 600000K

years in business Time In Business

24 Months

tenure Tenure

36 Months

approval time Approval Time

10 Days

processing fee Processing Fee

2%

Benefits

  • Finance amount is high
  • Long and flexible repayment period is provided by bank
  • A dedicated relationship manager guides you throughout the process
Apply Now

Features

  • The reduction rate and the flat rate is 16% and 8.82%. This denotes that the computation done was a division of the reduction rate by 1.812
  • Provides maximum finance amount of up to AED 1,500,000
  • Early settlement fee is 5% of the finance amount
  • Processing fee is 2% of the loan amount
  • Repayment period is up to 36 months
  • Provides minimum finance amount of up to AED 250,000
  • 2 years minimum length of business is required to qualify for this finance
  • The maximum annual turnover limit to be eligible for this finance is AED 600,000,000
  • Minimum annual sales turnover of AED 3,000,000 is needed to apply for this finance
  • Provided with pre-approved credit card free for life
  • You need to have a bank account with United Arab Bank to apply for this finance
  • After successful submission of documents, within next 10 working days the bank will approve the loan

Benefits

  • Finance amount is high
  • Long and flexible repayment period is provided by bank
  • A dedicated relationship manager guides you throughout the process
  • Documentation process is simple and easy

View details on bank page

flat rate Flat Rate

4.41%

minimum amount Minimum Loan

AED 100K

reducing rate Reducing Rate

8%

minimum annual turnover Min Annual Turnover

AED 2500K

years in business Time In Business

24 Months

tenure Tenure

36 Months

approval time Approval Time

5 Days

processing fee Processing Fee

2%

early settlement fee Early Settlement Fee

AED 0

Benefits

  • Finance amount is high
  • Long and flexible repayment period is provided by bank
  • A dedicated relationship manager guides you throughout the process
Apply Now

Features

  • The reduction rate and the flat rate is 8% and 4.41%. This denotes that the computation done was a division of the reduction rate by 1.814
  • There is no limit to the maximum loan amount
  • Early settlement fee is AED 0 to apply for this finance
  • Processing fee is 2% of the loan amount
  • Repayment period is up to 36 months
  • Provides minimum finance amount of up to AED 100,000
  • 2 years minimum length of business is required
  • There is no maximum annual turnover limit to apply for this finance
  • Minimum annual sales turnover of AED 2,500,000 is needed to apply for this finance
  • No need to have a bank account with Beehive to apply for this finance
  • After successful submission of documents, within next 5 working days the bank will approve the loan

Benefits

  • Finance amount is high
  • Long and flexible repayment period is provided by bank
  • A dedicated relationship manager guides you throughout the process
  • Documentation process is simple and easy

View details on bank page

What is a Business Loan?

In today’s times, businesses have the constant need to be at the top of their game. Whether it is adopting a new technology, mergers, acquisitions or opening the gates for imports and exports, they need to have it all. This has led to a regular need of funds at the disposal of the business owners

UAE, which ranks among the top 30 countries in the World Bank’s Report on the ease of doing business, recognized this need and offers business loans to customers to help them meet their business requirements. There are many banks and financial institutions offering business finance today.

A business loan is usually an unsecured loan provided to businesses to meet their small financial needs. The loan must be paid back in instalments with interest over the agreed tenure.

Features of a Business Loan

As a business owner, you must be careful in choosing a business finance provider. Here is a look at some salient features of business loans in UAE:

  • Most banks do not require a security against the loan. However, you must check with the bank before applying.
  • Customers having a current account are usually offered preferential rates and other benefits when they apply for home loans.
  • Some banks offer top-up or loan extension facility if you meet their requirements.
  • Business loans under the Shariah laws of Islamic Banking are also available in UAE.
  • Some banks offer free credit cards and insurance cover along with the business loan.
  • The loan amount usually varies from AED 100,000 to AED 2 million.
  • Many banks put in a lot of effort to ensure that you have seamless experience. Relationship Managers are assigned to majority business loan customers for query handling.
  • Some banks may set a minimum balance requirement to offer business loans.
  • You have an option to choose between flat and reducing interest rates.

How can I use the Business Loan?

Business owners have a constant requirement of finance for some or most of these reasons:

  • Working capital
  • Expansion of operations
  • Inventory purchase
  • Launching a sister/support company
  • Logistics
  • Mergers
  • Acquisitions

Regardless of the reason behind applying for a business loan, most banks in UAE are welcoming the possibility of a mutually beneficial borrower-lender partnership with business owners.

Eligibility for Business Loan in UAE

Every bank has its own eligibility criteria which needs to be checked individually. However, some basic requirements are as follows:

  • The business should be at least 1 year in operation.
  • Minimum annual turnover upwards of AED 1 million
  • Entities eligible to apply for a business loan usually are:
  • Limited Liability Company (LLC)
  • Sole Proprietorship
  • Partnership
  • Free Zone companies
  • Branches/Subsidiaries of offshore organizations

Documents required for Business Loan in UAE

As is the case with eligibility, every bank can have its own requirement of documents to process your loan application. Apart from the application form, some basic documents needed are:

  • Memorandum and articles of association / Partnership agreement / Power of Attorney (POA)
  • Passport copy
  • Copy of the trade license
  • Bank statements

If you already have an account with the bank, then the number of documents needed might reduce. Please ensure that you arrange all the documents before submitting your application.

Business Loan Fees and Charges

There are different kinds of fees and charges associated with business loans and they can vary with each bank. These may include an arrangement fee which usually is a small percentage of the loan amount, processing fees of around 1.2-2% and early settlement fee of around 1% of the outstanding amount. While most of these charges would be standard across banks, it would be in your best interest to go through the detailed schedule of charges thoroughly before applying.

Use our EMI Loan Calculator to Calculate your Business Loan Installments.

Business Loans offered by majority banks

Banks are slowly recognizing the need for business loans in the market and are continuously improving their products. Some leading banks offering business loans are:

  • Mashreq Bank – Small business loan
  • Abu Dhabi Islamic Bank – business finance
  • RAKBANK - finance
  • Dubai Islamic Bank – business finance

Remember, a business loan can go a long way in expanding and improving your current business. However, ensure that you research well as this will be a long-term financial association and you wouldn’t want to find yourself at the shorter end of the stick. Consult a business/financial advisor, if need be.

Frequently Asked Questions

⭐ What is LOB?

A. LOB is an abbreviation for Length of Business. Every bank has a specific requirement about the time for which the trade license is functional. The authorized signatory, as evidenced by the Memorandum of Articles, should be at least one year in business (can vary from bank to bank). It is advisable to talk to your bank to get a better understanding of the same.

⭐ Can I do partial payment of my loan?

A. The answer to this question depends on the bank through which you have availed the loan. Usually, banks dissuade partial payments of business loans. However, you may talk to your bank regarding the same.

⭐ My bank is asking for a collateral for a Business Loan?

A. While majority banks provide business loans with collaterals, some banks may choose to demand the same. You may approach other banks with no such conditions. Remember, to check all terms and conditions and schedule of charges before signing the dotted line.

⭐ What is flat and reducing rate of interest?

A. Here is an explanation for both the rates:

Flat rate of interest: Interest is charged on the amount borrowed at the agreed rate of interest throughout the tenure of the loan.

Reducing rate of interest: In these loans, the first instalment is charged on the entire amount and from there the principal component keeps reducing and so does the interest.

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