If you are planning to start or expand your business in Dubai, obtaining a loan can provide the necessary funding. However, securing investment can be challenging, especially for new ventures. Dubai, with its flexible economic policies, tax exemptions, and excellent infrastructure, is an attractive destination for small and medium sized businesses. UAE banks have already disbursed approximately AED 93.4 billion in loans to businesses, making it an ideal choice for entrepreneurs. Loan amounts offered typically range from AED 50,000 to AED 5 million, depending on the applicant’s financial profile.
Business Loan Types in Dubai
Standard Loan
Conditions and monthly repayment terms are negotiable, along with interest rates.
Small Business Association (SBA) Backed Loan
Government backed support for small businesses, ensuring lower risk involvement.
Islamic Loan
Interest free business loan, with profits shared with the bank.
Credit Card Loan
Loan disbursed through credit card funds, but it comes with higher interest rates.
Loan Application Eligibility Criteria
To be eligible for a business loan in Dubai, you need to meet the following criteria:
- The applicant must be at least 21 years old.
- The business should have been operating for at least one year.
- A corporate bank account for the business is necessary.
- Provide bank statements for the last 6-12 months.
- The annual revenue of the business should be at least AED 1 million, varying between banks.
- If your business is a subsidiary or a branch of a foreign company, obtaining a loan might be easier.
Required Documents
When applying for a business loan in Dubai, prepare the following documents:
- Trade License
- Bank Application
- Loan applicant’s passport copy
- Bank statements for the last 6-12 months
- Copy or original of Articles of Association
- Copy or original of Power of Attorney
- Copy or original of Memorandum of Association
- Tenancy agreement
- Audit reports
- Ministry of Labor issued employees’ list
- Original or copy of Emirates ID
- Original or copy of commercial lease papers (if requested)
- Original and copy of value-added tax (VAT) certificate
- Lading bill (if requested)
Improve Your Chances of Getting a Business Loan in Dubai
To increase the likelihood of obtaining a business loan in Dubai, follow these steps:
- Ensure that your credit score is above 750.
- Settle all outstanding dues, including loans, credit card bills, or any other debts promptly.
- Refrain from applying for loans at multiple banks or financial institutions simultaneously.
Conclusion
By following these guidelines and meeting the eligibility criteria, you can enhance your chances of successfully acquiring a business loan in Dubai. Remember to maintain a good credit score, fulfill your financial obligations promptly, and avoid applying for loans at multiple institutions simultaneously. By adhering to these recommendations, you can improve your chances of obtaining the necessary funding for your business in Dubai.
