What is Business Loan?
Business loans are a typical form of loan which is unsecured in nature and installment based. This form of loan is offered for the business owners to manage and scale up their business to next level. Business loan is made available both for expansion of business and also to provide fund for medium and long term requirements of working capital.
If you are planning to expand the business or looking to manage the cash flow, business loan will be the ideal choice for your need. The financial institutions and bank specialists in UAE will help businesses in finding the best product targeting your specific requirement. You can surely make your dream come true with right utilization of fund collected through Business loans.
Features of UAE Business Loan:
Different banks offer different terms and conditions; however the most general terms for Business Loans in Dubai, Abu Dhabi, Sharjah and other parts of UAE are:
- Loan Amount can vary from 100,000 AED to 3 Million AED.
- Most banks don’t require collateral.
- Flexible re-payment options, which can range from 2-5 years. The repayment period usually depends on the amount of loan taken.
- Interest rates also vary from one bank to another.
- Most banks offer a Dedicated Relationship Manager to ensure all the client`s requirements are met, and all the questions are answered.
- Along with the business loan, you will also get a Business Current Account with the lending bank that will have no minimum balance requirement.
- Most banks offer a Credit Card as well in addition to the Business Loans in UAE.
- Loan Period: 12-48 months
- Interest Rate: From 18% to 24 reducing.
The below mentioned entities are eligible for getting business loan in UAE.
- Mainland-Limited Liability Company (LLC)
- Sole Establishments.
- Professional company.
- Free Zone sole establishment.
- Free Zone-LLC
- Branches of overseas companies in UAE
Documents Required for Business Loan in UAE
- Bank`s application form.
- A copy of trade-license all pages.
- All applicable Incorporation documents: Partnership agreement, Power of Attorney, Memo of Association, etc.
- Bank statement of last 6 or 12 months.
- Valid passport and visa copy of owner and all partners.
- The documents requirement will also vary from bank to bank, but generally the above mentioned documents will be required.