Documents Required to get Business Loan in Dubai

By Sakshi Srivastava - 15 Dec 2021 Last Updated: 27 Jan 2022
Documents Required to get Business Loan in Dubai

The United Arab Emirates might be thought of as an inviting place for entrepreneurs to establish their businesses. Many entrepreneurs travel to this kingdom of gold to try their luck. The UAE is the first place that springs to mind for anyone looking to start a business abroad. In terms of money, this is a country that is thought to be stable. As a result, for financial assistance, one must turn to UAE banks for a loan. For assistance in acquiring a Business Loan in the UAE, contact our specialists at Dhanguard.

Capital investment needs, expansion of present business operations, purchase of new inventory, start-up of a new firm, import and export shipping, cash flow management, mergers and acquisitions, and other business requirements are all covered by business loans. Small and medium firms in the UAE can borrow between 150,000 and 7,50,000 AED from UAE banks, with payback terms ranging from 12 to 48 months. On a declining balance, the interest rate can range from 12 to 24 percent. The company should have a minimum turnover of $3 million and be in operation for at least two years. They can provide term loans to huge businesses, but it will mostly depend on your company's qualifications. Dhanguard will assist you in getting Business Loan in Dubai.

What documents are necessary to obtain a business loan in Dubai?

Obtaining a business loan in the UAE, whether for a small or large business, is simple if you have real and valid paperwork. When it comes to paperwork, the most crucial and required document is the bank statement.

The following are the documentation needed to obtain a loan in the United Arab Emirates:

  • Bank Statements for past 12 months
  • Memorandum of Association/ Share Certificate or Board of Resolution (if applicable)
  • Passport and Visa of all the Partners
  • Emirates ID
  • Office Ejari
  • Owners Home Residence Tenancy Contract or Sharing Accommodation Letter
  • High Volume Transaction invoices
  • VAT Certificate
  • Audit Report
  • List of employees obtained from Ministry of Labour
  • Lading Bill (if applicable)
  • Trade License

A Trade Licence is a permit issued by the UAE government to investors that allows them to conduct business in the country. Every trade has its own set of trade permits, which are determined by the type of your firm. The trade licencing prices will range from AED 10,000 to AED 30,000. The majority of business owners choose a general trade licence that will allow them to operate their company for all goods and supplies. A trade licence is advantageous not only for obtaining a company loan, but also for obtaining other loans in the UAE. For self-employed people, a trade licence is a crucial document.

Steps to get Business Loan in Dubai?

Here are a few easy steps to help you increase your business loan eligibility:

Credit Score

Make sure your credit score is at least 750. It facilitates the approval of a business loan with minimal effort.

Resolve Past Debts

Make an effort to pay off previous debts such as loans, credit card bills, and other obligations. Also, make sure you pay all of your bills on time. You may develop a pristine payments history this manner, which can assist you improve your business loan eligibility.

Taking multiple Loans at once is not a Good Idea

Before you apply for a company loan, evaluate your financial needs. Also, avoid filing several loan applications, as this can negatively impact your creditworthiness.

Get a Loan with a Longer Repayment Period

If possible, choose a loan with a longer repayment period. It will make it easier for you to repay your company loan over time. Another advantage of having a longer payback period is that the instalment amount is reduced.

The Benefits of a Business Loan in Dubai

The following are the main characteristics of a business loan in the United Arab Emirates:

Loan Amount

In the UAE, business loans typically vary from AED 50,000 to AED 5 million. Banks examine the applicant's financial situation and make a loan decision based on such information.

Repayment Tenure

The repayment term for a company loan is usually between two and five years. The length of the payback period is also determined by the loan amount.

Interest Rates

Business loan interest rates can differ from one bank to the next. However, a variety of criteria influence the interest rates for applicants, including credit history, monthly income, the number of active loans, the loan amount, and so on. A company loan's typical interest rate ranges from 15% to 24%, with rates decreasing each year.

Relationship Manager

In the UAE, most banks assign a relationship manager to loan borrowers so that they can contact them if they have any questions.

Business Account

On the day they apply for a business loan, the applicants must have an active business account in one of the UAE banks. This enables the lender to obtain a reference from the bank regarding the applicant's relationship.

Conclusion

Getting a loan in the UAE is no longer as difficult as it once was, the process has got much simpler and straightforward. In its annual 'Doing Business' report, the World Bank ranked the UAE 23rd in terms of ease of doing business. This was mostly owing to the ease with which banks could provide loans. Business loans will assist you in expanding your company. Small and medium-sized firms can acquire a business loan in Dubai with minimal paperwork and effort to satisfy their short- to medium-term cash flow demands. Contact our specialists at Dhanguard for help obtaining a Business Loan in the UAE.

Grow your business with business loan, term loan, capital loan available at attractive interest rates and minimum documentation with no hidden cost with Dhanguard.

By Sakshi Srivastava

15-Dec, 2021

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