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How to take loans and credits in Dubai, UAE

How to take loans and credits in Dubai, UAE

Starting a business in the United Arab Emirates is a tempting prospect, opening the way to new markets and business development. However, ambitious plans often require financial support to realise. Fortunately, there are many business lending options available in the Emirates. Therefore, it is worth breaking down the most popular types of loans to choose the best option.

1. Standard business loans are the classic option offered by most banks in Dubai. Suitable for companies with a good credit history who are looking for a quick and easy way to get funding.

Advantages:

Simplicity: the process of obtaining a standard loan is streamlined, with many banks providing convenient online application platforms.
Flexibility: the loan amount and interest rates vary depending on the needs of the business and the bank’s terms and conditions.

Disadvantages:

The loan will require compliance with standards: a good credit history and documented financial standing.
Loan repayments are fixed, which is quite problematic in an unstable economic situation.

2. Islamic finance is an option for those who adhere to the principles of Shariah. A tangible plus: Islamic financing eliminates the charging of interest rates. Instead, the bank receives a portion of the business’s profits, making it a more affordable option for many entrepreneurs.

Minuses:

Specific requirements: certain Shariah rules must be followed when using Islamic finance, such as a ban on trading in certain goods or services.
Limited options: not all banks offer Islamic finance and loan terms may differ from conventional ones.

3. Financing from the Small Business Association (SBA) — a programme supported by the UAE government that offers the most favourable interest rates and repayment terms compared to traditional bank loans. And it is not only financial assistance, but also access to counselling, training and other resources for business development.

Limitations:

on the size of the business: the SBA programme is designed for small and medium-sized enterprises, so there are limitations on turnover and number of employees.
Additional requirements: in order to obtain a loan, you must meet certain requirements and provide additional documentation.

Choosing the best type of loan depends on your personal needs and business situation. To avoid mistakes and to choose the best option, you should use a few key recommendations:

1. Before you go looking for a loan, it is important to clearly define the purposes for which you need the money. This allows you to properly estimate the amount and term of the loan you need. For example, if you are planning to expand production, you will need more money than if you are just upgrading your equipment.

2. Examine interest rates and terms:

Interest rates can range from 9.1 per cent to 26 per cent, so it is crucial to compare offers from different banks.
Choose a repayment term that best reflects your capabilities and allows you to repay the loan comfortably.
Pay attention not only to interest rates, but also to additional fees that affect the overall cost of the loan.

3. Each bank has different requirements for borrowers.

They usually include:

Applicant’s age of at least 21 years.
One year or more of business tenure (sometimes two years is required).
A valid bank account in the name of the organisation.
A turnover of one million AED or more.

4. Checking the reputation of the lender.

Do not entrust money to dubious banks or financial institutions. Check the reputation of the lender by studying customer testimonials, ratings and reviews. This will help you make sure that your chosen bank is reliable and stable.

5. Evaluate flexibility, repayment options and support.

Choose a bank that offers you flexible loan terms to suit your particular circumstances.
Possibility to choose a convenient payment date and change the repayment schedule if necessary.
The possibility of early repayment without additional penalties.
The bank has a support department that is ready to answer your questions and help you in case of problems.

6. Comparison of fees and commissions.

In addition to interest rates, banks may charge fees:

for processing the loan;
for repayment faster than the established term;
for late payments;
insurance premiums.

Compare these fees across banks and choose the lender offering the lowest charges.

7. Fixed and declining interest rates.

In Dubai, fixed or declining interest rates are available to choose from. The fixed rate does not change during the entire term of the loan, allowing you to calculate your payments accurately. A declining one is quite favourable in the long run, but payments will be higher in the first few years of repayment.

8. Consult a financial services professional. He will help you understand the nuances of lending, choose the best programme and make a repayment plan.

Regardless of the type of loan you choose, remember that obtaining financing is an important step towards the success of your business in the UAE. It allows you to secure the financial support you need to expand your operations, purchase equipment, cover operating expenses and implement new projects. Plan your needs properly and thoroughly understand the different types of loans.

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Personal Data Processing Policy.

1. General provisions This personal data processing policy is compiled in accordance with the requirements of Federal Law No. 152-FZ of 27.07.2006 "On Personal Data" (hereinafter referred to as the Personal Data Law) and defines the procedure for processing personal data and measures to ensure the security of personal data taken by Mikhailov Ivan Sergeevich (hereinafter referred to as the Operator).

1.1. The Operator sets as its most important goal and condition for the implementation of its activities the observance of the rights and freedoms of man and citizen in the processing of his personal data, including the protection of the rights to privacy, personal and family secrets.

1.2. This Operators policy regarding the processing of personal data (hereinafter referred to as the Policy) applies to all information that the Operator can receive about website visitors https://make-biz.com /.

2. Basic concepts used in Politics

2.1. Automated processing of personal data — processing of personal data using computer technology.

2.2. Blocking of personal data — temporary termination of the processing of personal data (except in cases where processing is necessary to clarify personal data).

2.3. Website - a set of graphic and informational materials, as well as computer programs and databases that ensure their availability on the Internet at a network address https://make-biz.com /.

2.4. Personal data information system — a set of personal data contained in databases and information technologies and technical means that ensure their processing.

2.5. Depersonalization of personal data — actions as a result of which it is impossible to determine, without the use of additional information, the ownership of personal data to a specific User or other subject of personal data.

2.6. Processing of personal data — any action (operation) or a set of actions (operations) performed with or without the use of automation tools with personal data, including collection, recording, systematization, accumulation, storage, clarification (updating, modification), extraction, use, transfer (distribution, provision, access), depersonalization, blocking, deletion, destruction of personal data.

2.7. Operator — a state body, municipal body, legal entity or individual, independently or jointly with other persons organizing and/or processing personal data, as well as determining the purposes of processing personal data, the composition of personal data to be processed, actions (operations) performed with personal data.

2.8. Personal data — any information related directly or indirectly to a specific or identifiable User of the Website https://make-biz.com /.

2.9. Personal data authorized by the subject of personal data for distribution — personal data to which an unlimited number of persons have access by the subject of personal data by giving consent to the processing of personal data authorized by the subject of personal data for distribution in accordance with the procedure provided for by the Law on Personal Data (hereinafter — personal data authorized for distribution).

2.10. User — any visitor to the website https://make-biz.com /.

2.11. Provision of personal data — actions aimed at disclosure of personal data to a certain person or a certain circle of persons.

2.12. Dissemination of personal data — any actions aimed at disclosure of personal data to an indefinite circle of persons (transfer of personal data) or familiarization with personal data of an unlimited circle of persons, including the publication of personal data in the media, placement in information and telecommunications networks or providing access to personal data to anyor in another way.

2.13. Cross—border transfer of personal data is the transfer of personal data to the territory of a foreign state to the authority of a foreign state, a foreign individual or a foreign legal entity.

2.14. Destruction of personal data — any actions as a result of which personal data is permanently destroyed with the impossibility of further restoration of the content of personal data in the personal data information system and/or the material carriers of personal data are destroyed.

3. Basic rights and obligations of the Operator

3.1. The Operator has the right to: — receive reliable information and/or documents containing personal data from the personal data subject; — in case the personal data subject withdraws consent to the processing of personal data, as well as sending a request to terminate the processing of personal data, the Operator has the right to continue processing personal data without consent the subject of personal data in the presence of the grounds specified in the Law on Personal Data; — independently determine the composition and list of measures necessary and sufficient to ensure the fulfillment of obligations provided for by the Law on Personal Data and regulatory legal acts adopted in accordance with it, unless otherwise provided by the Law on Personal Data or other federal laws.

3.2. The operator is obliged to: — provide the subject of personal data at his request with information concerning the processing of his personal data; — organize the processing of personal data in accordance with the procedure established by the current legislation of the Russian Federation; — respond to requests and requests of personal data subjects and their legal representatives in accordance with the requirements of the Law on Personal Data; — report to the authorized body the body for the protection of the rights of personal data subjects at the request of this body, the necessary information within 10 days from the date of receipt of such a request; — to publish or otherwise provide unrestricted access to this Policy regarding the processing of personal data; — to take legal, organizational and technical measures to protect personal data from unauthorized or accidental access to them, destruction, modification, blocking, copying, provision, dissemination of personal data, as well as from other illegal actions in relation to personal data data; — stop the transfer (distribution, provision, access) of personal data, stop processing and destroy personal data in the manner and cases provided for by the Law on Personal Data; — perform other duties provided for by the Law on Personal Data.

4. Basic rights and obligations of personal data subjects

4.1. Personal data subjects have the right to: — receive information concerning the processing of their personal data, except in cases provided for by federal laws. The information is provided to the personal data subject by the Operator in an accessible form, and it should not contain personal data related to other personal data subjects, except in cases where there are legitimate grounds for disclosure of such personal data. The list of information and the procedure for obtaining it is established by the Law on Personal Data; — to require the operator to clarify his personal data, block or destroy them if the personal data is incomplete, outdated, inaccurate, illegally obtained or not necessary for the stated purpose of processing, as well as to take measures provided by law to protect their rights; — to put forward the condition of prior consent when processing personal data in order to promote in the market of goods, works and services; — to withdraw consent to the processing of personal data, as well as to send a request to terminate the processing of personal data; — to appeal to the authorized body for the protection of the rights of personal data subjects or in court against illegal actions or inaction of the Operator during the processing of his personal data; — to exercise other rights provided for by the legislation of the Russian Federation.

4.2. The subjects of personal data are obliged to: — provide the Operator with reliable data about themselves; — inform the Operator about the clarification (updating, modification) of their personal data.

4.3. Persons who have provided the Operator with false information about themselves or information about another personal data subject without the latters consent are liable in accordance with the legislation of the Russian Federation.

5. Principles of personal data processing

5.1. The processing of personal data is carried out on a legal and fair basis.

5.2. The processing of personal data is limited to the achievement of specific, predetermined and legitimate goals. Processing of personal data incompatible with the purposes of personal data collection is not allowed.

5.3. It is not allowed to combine databases containing personal data, the processing of which is carried out for purposes incompatible with each other.

5.4. Only personal data that meet the purposes of their processing are subject to processing.

5.5. The content and volume of the processed personal data correspond to the stated purposes of processing. Redundancy of the processed personal data in relation to the stated purposes of their processing is not allowed.

5.6. When processing personal data, the accuracy of personal data, their sufficiency, and, if necessary, relevance to the purposes of personal data processing is ensured. The Operator takes the necessary measures and/or ensures that they are taken to delete or clarify incomplete or inaccurate data.