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A Full Guide On Getting A Business Loan In Dubai

A Full Guide On Getting A Business Loan In Dubai

Published On:
November 19, 2023

 

Every business needs a boost to scale and expand. If you wish to grow your company's operations, getting a business loan in Dubai can be the boost you’re searching for.

 

In this article, we will pinpoint all that you need to know about business loans in Dubai and how to get a business loan in Dubai that suits your company size. 

 

We will also shed light on the benefits offered by reputable banks to support your business. Yes, scaling is not as easy as it seems, but it’s achievable in a supportive environment like the UAE.

 

What Is A Business Loan In Dubai?

 

A business loan in Dubai is a self-explanatory term that implies borrowing money from a financial entity like a bank to support a company’s expenses. As businesses need cash flow to grow, banks/private lenders set lending agreements to offer loans to business owners. 

 

If you wonder how business loans work or what they cover, they can boost operational expenses, set-up costs, human capital wages, tools purchases, and more. Acquiring a small business loan in UAE is easier than before as business owners go through a seamless process as long as they’re eligible for the lender’s requirements.

 

How to Get A Business Loan in Dubai?

 

  1. Running Business: Getting a business loan in Dubai is now easier than ever, especially if the company is raising sales, and has started for at least one year. Once the business meets the requirements of the bank, owners can get a small or large business loan as per the business needs.
  2. Getting Consultation: Consultation is a crucial factor in landing a business loan. Before applying for a business loan, you have to be eligible for certain criteria. If pondering how you will get a business loan, ponder no more as Freezoner's dedicated team is ready to guide you.

 

 

Freezoner team will not only help you in the company formation in Dubai, but will direct you to collaborate with reliable banks that offer a reasonable business loan in UAE based on the business field, the size, and more. 

 

So, if you want to expand by setting up a branch office in Dubai and running on a low budget, applying for a business loan can be a solution. Yet, simple mistakes can hold the loan process, so contact us and we will sort it out for you.

 

  1. Choosing a Bank: Choosing a reliable bank to collaborate with is an essential step in your business loan process. The bank will facilitate the loan according to certain eligibilities.

 

Recommended Banks for a Business Loan in Dubai

There are plenty of reputable banks in UAE that can support your business by offering a business loan in Dubai. Here are some of the grounded banks, providing reasonable business loans in UAE:

 

  • Commercial Bank In Dubai
  • Dubai Islamic Bank 
  • Emirates Islamic
  • Emarites NDB

 

Let’s delve into the requirements of each bank.

 

Commercial Bank In Dubai 

 

Islamic finance is a fair play. Hence, the Commercial Bank In Dubai offers you a comprehensive business loan in Dubai of up to 2 million Dirhams with security requirements and no collateral benefits. The bank gives you flexible repayment tenure from 12 to 48 months with the lowest interest rate amongst the UAE business loan interest rates.

 

The bank keeps the utmost levels of transparency and support to convey all terms and acts promptly. The CBD bank does not require an annual statement to audit your financials. 

 

What Are the Eligibility Terms?

 

To acquire a business loan in Dubai with CBD your company shall meet the following eligibility Terms:

 

  1. The business should be actively working at least for two years
  2. The annual sales shall reach 2 million Dirhams or more
  3. There should be an ongoing bank account for at least 6 months with the bank
  4. A minimum amount of 40,000 Dirhams is to be saved in the bank account 
  5. The age of the applicant should not be less than 25 and not more than 65 years old

 

Dubai Islamic Bank 

 

The Dubai Islam Bank offers business owners a business loan for new companies in Dubai with a cost of 1.5 million Dirhams. The bank supports companies that aspire to expansion and offers them a seamless loan process. There are multiple payment options offered to empower business needs. 

 

The DIB bank offers profit rates that vary between 17% to 24% and the repayment period starts from 6 months and extends to 48 months. The outstanding balance costs 1% as a settlement fee.

 

Regarding the eligibility terms, the company should achieve at least 1 million sales turnovers annually as an eligibility condition. The business should also be up and running for at least one year. 

 

Emirates Islamic

 

The Emirates Islamic Bank comes with handy solutions to support your multi-disciplinary financial needs. They offer effective Islamic products like Murabaha and Ijarah. They also offer various solutions to support your work capital and assets with a business loan in UAE of up to 3 million. There should be a secured requirement basis of 5 million.

 

Regarding the charges, there are several fees to be included as follows:

 

  • Processing Fee costs 1.50%
  • Settlement Fee reaches 5.0%
  • The minimum annual turnover of the business shall reach up to AED 1.5 million

 

Emirates NDB

 

As large as it is, the Emirates NDB bank offers plenty of business loan types, and we will shed light on the loans against property. This type can be relatable to large businesses as it can offer up to AED 7 million. 

 

No matter the company’s size, or salaried professional, there will be flexible terms to acquire this loan against property type. It comes with a 70% max. amount of the market value for the UAE. 

 

The Maximum tuner of the repayment is 15 years against your commercial or residential property.

 

Conclusion

 

Landing a business loan in Dubai is a feasible step for your business. If you need a financial boost for equipment purchases, inventory expenses, or human capital wages, you can apply for a business loan to cover them.

 

A business loan in UAE is a process that should be done thoroughly, so our team at Freezoner is always ready to answer your questions. Don’t hesitate to contact us and we will provide you with a tailored consultation for your business. 

 

Banks that provide business loans are plenty, but you need to study this critical step first to avoid cumulative amounts and benefits. Choose the facilitated business loan that fits your business needs. 

 

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