How to Get a Business Loan in the Dubai

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loan brokers in Dubai

How to Get a Business Loan in the Dubai

Dubai has grown in popularity over the years as a destination for expatriates. To keep up with this trend, the UAE lending industry has developed into a well-established marketplace, offering business loans to foreign and local lenders as well as UAE citizens. If you are looking for a business loan and want to know how to get a Business loan in Dubai. Then here we present you a few things that are very crucial for the process of obtaining a business loan. 

Business loans are highly in Demand among small and medium industries, commercial business organizations, and even entrepreneurs to name a few. Almost all major financial institutions and banks in Dubai have commercial financial solutions available to them. There are many options for a business loan in Dubai and you have to be very careful while selecting the one that suits your requirements for that matter, you need to ask what you need to get this loan; it was processed fast and smoothly. 

Eligibility Criteria to get Business Loan in Dubai

The very crucial thing that you should consider before contacting a bank to get a company loan in Dubai is the eligibility criteria provided by the concerned bank. 

  • The business has to be in operation for at least one year
  • If your association is a branch or subsidiary of an offshore company, this would    be considered easy to get a loan.
  • An annual turnover of AED one million is needed to obtain a company loan in Dubai. 

The UAE banks offer various types of loans for various types of companies. The period of the loan for business is one to four years. 

What are the documents the company needs to provide Company Loans in Dubai

Whether it is a large or small company, this is easy to obtain a business loan in Dubai if you have valid documents. The necessary documents you required are mentioned below:

  • Bank statement for the last twelve months
  • Memorandum of Association/Board of resolution or share certificate
  • Passport and visa of the partners
  • Emirates ID
  • Office EJARI
  • Audit report
  • List of employees obtained from Ministry of labor
  • Landing bill
  • Trade license

Owners home residence tenancy contract or sharing accommodation letter

High volume transaction invoices

VAT certificate

Applying for a Small Business Loan

It is quite easy to get a small business loan in Dubai with several banks and credit companies providing a variety of packages. If you want to get the best out of a small business loan keep in mind the 5 Cs of your credit which are capital, character, capacity, collateral, and any other ‘condition’ from the lender. As easy or convenient as they can be obtained, that does not make them risk-free. 

If the local bank doesn’t provide your small business loan in Dubai, you can apply for it at the Small Business Association (SBA). SBA loans are backed by the government. They are a good option for small businesses but the risk is that if you are unable to pay back, the government will hit you hard. Since non-payment has the worst consequences, people usually avoid it. 

Benefits of a Business Loan in UAE

The benefits of a business loan in Dubai are:

  • Free credit cards
  • Free life insurance cover
  • Option to select between fixed interest rates or reducing interest rates
  • No need to offer protection for the loan

Getting a business loan in Dubai is easy but sometimes it sounds tricky process. You should get the right license and require to prepare the necessary documents for loan approval. Dubai banks place strict adherence rules. If there is any discrepancy between business activity and license, the bank will reject your application. To avoid this, we encourage you to contact loan brokers in Dubai who will guide you properly in obtaining a loan for your business. For more information contact us at Taskmaster Commercial Broker.

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