The main motive of a business loan in Dubai is to give financial support to all entrepreneurs. As a result, they will enable to expand or grow their businesses. In Dubai, this kind of loan is widely available with a reasonable interest rate. Moreover, the lenders give both options of getting a loan with or without the need for security. Most importantly, it depends on the debt amount.
When you decide to start up or enhance your business, Loansforgulf offers easier application of business loans. The eligibility criteria of this company are easier to meet. Due to its amazing features, you should apply for a loan through it. Their professionals also guide clients on how they can enhance their eligibility of availing the debt in a shorter time. This blog explains all the details of business loans including specifications, eligibility criteria, required documents, etc.
Specifications of business loans in Dubai
Business loans in Dubai are suitable for all business owners who face difficulty in growing their companies due to a lack of finances. There are numerous specifications of this loan which make it more valuable:
This loan type is specifically designed for any sort of business in Dubai. Therefore, the lenders demand the borrowers using of business accounts in Dubai’s banks. Their account must be active and the entrepreneurs use them for the dealing of all business’s works. When you have a business account, the lender trusts more on you more and gives you the amount you need.
The duration for repayments is according to the total amount. For a higher amount, the tenure is also higher. So, the borrower pays off easily without any trouble. Normally, the years for the repaying of the debt are from 2 to 5 years.
Amount of debt:
The debt amount of businesses loan is different from other loan types. Normally, the range of its amount is between 50000 and 5 million AED. Every lender checks the financial profile of applicants. After then, the fund amount gives to the borrower according to his finances.
As we all know that the interest rate is not the same from one bank to another. However, business loans are a little higher than personal loans. But, all of Dubai’s banks and other financial companies are providing loans at competitive interest rates. There are particular factors that affect interest rates. That’s why every applicant gets a loan with a different interest amount. These factors include credit score, salary per month, debt amount, etc. In general, the rate is from 15% to 24%.
The majority of the banks in the UAE have relationship managers. The applicants contact the relationship manager to get all the details of the loans including the application process. In this way, if you have any questions, the manager will guide you.
Eligibility criteria for applying for a business loan
Before applying, communicate with the lender and know about the eligibility criteria. The professionals of Loansforgulf will give you complete information on their criteria. So, when you apply, you have full confidence in getting approval on your debt request. The major criteria factors for eligibility are:
The working experience of all entrepreneurs is a minimum of one year. It is necessary to meet, so the lender will know that the applicant is working harder and is sincere.
Your bank account:
There is no limitation on your business account in a specific bank. Your account can be in any of Dubai’s banks. Then, a lender will offer you debt and may transfer the amount to the account.
The minimum age is 21 years. Anyone below 21 years is not eligible.
Another factor of eligibility is your business’s working mode. If the applicant’s company is the subsidiary of any other well-known organization, there is much benefit. The lender prefers such an applicant’s request and gives them a loan quickly.
At the time of applying, the annual turnover should be higher than one million AED. It is essential for instant approval. There are various types of business finances. And, every lender’s terms are on the basis of type.
All small & large scales of businesses get the finances but there are requirements for applicant’s documents. Just like eligibility, the submission of these documents is also compulsory. In particular, all the documents must be valid. The needed documents are:
- Bank statement for the past twelve months
- Trade license
- Emirates ID copy with passport & visa copies
- List of company’s current employees
- Show the audit report
- Passport copies of companies’ partners
- VAT certificate
Most importantly, the trade license is crucial for the applicant’s eligibility to apply. So, this license must be valid. The lender will verify it
Ways to Increase Business Loan Eligibility in Dubai
Anyone who faces the problem of a debt application rejection can easily increase eligibility. The ways to increase eligibility for businesses finances in Dubai are:
- Try to increase your credit score. This score must be higher than 750.
- If you have any existing debt, you should pay it before applying.
- Take only one loan at a time instead of applying for multiple debts.
- Choose a longer tenor of the loan. It will help you in easier paying off due to not having higher installments.