Get A Business Loan in UAE
Businessmen operating in the United Arab Emirates consider availing a business loan to sustain, expand, or refinance a business. Banks and other financial lending institutions in the UAE offer business loans at reasonable interest rates with or without security, depending upon the potential risk.
There is a lot of eligibility criteria that you need to satisfy, whether it be a new or an already-running business for which you are looking for a business loan in the UAE.
Today, FAST GROW BANKING will be your guide and will tell you all about Business Loans in the United Arab Emirates for new setup business in UAE and for the expansion of the business and corporate services.
What are the Features of a Business Loan in UAE?
Repayment Period:
A business loan in the UAE has a pay-back period of two to five years. The number of years of the loan pay-back period is also dependent on the amount of money a person asks for during loan application.
Interest Rate:
The interest rates may vary from bank to bank to offer a business loan. However, the interest rates of applicants are influenced by a number of factors such as the credit history of applicants, monthly income, number of open loans, size of the loan, etc. Usually, company loans have a yearly decrease in interest rates from 15% to 24%.
Relationship Manager:
Most of the banks in the United Arab Emirates designate a relationship manager to the loan borrowers so that they can contact them if they have any queries.
Business Account:
The applicant, at the time of application, must have an open business account with any of the United Arab Emirates banks. This helps the lender to get a reference from the bank on their experience with the applicant.
Loan Amount:
Business loans in the United Arab Emirates range from AED 50,000 to 5,000,000. Banks assess the applicant's financial condition and approve the loan amount based on that.
Approach your bank and ask about the eligibility criteria you must meet to avail of business loans in the UAE. The eligibility criteria may vary from bank to bank. Eligibility Criteria to Apply for Business Loan in UAE You must be aware of the bank's eligibility criteria before actually approaching the bank to apply for your business loan. UAE banks offer loans that are tailored for different business sectors. Loans for the new business set up in the UAE or expansion of corporate services can be availed for 1 to 4-year tenures. General following are the eligibility criteria for all the UAE banks that offer business loans:
Your business should at least generate AED 1 million a year for you to be eligible for a loan.
It would also be easier to obtain credit for your company if your firm is merely a subsidiary or branch of an offshore company.
The company must be at least one year old.