1. Product Suite Overview

Facility Name	Purpose	Maximum Funding	Tenor	Security / Collateral
SME Growth Loan	Short-term working capital (government-backed)	Up to AED 1 million⁵	Up to 4 years	50% guaranteed by EDB; no collateral
Working Capital Revolver	Ongoing liquidity (cash cycle)	As required	Revolving (annual renewal)	Corporate guarantee or lien on receivables
Term Loan	CAPEX, expansion, consolidation	Up to AED 50 million (negotiable)	1–7 years⁶	Asset-backed or corporate guarantee
Equipment Finance	Acquisition of machinery, vehicles, ICT	Up to AED 25 million	1–5 years	Asset lease or ownership pledge
Commercial Real Estate Loan	Purchase/refinance of property	Up to 70% of property value	Up to 15 years	First-ranking mortgage
Trade Finance	Letters of credit, guarantees, receivables	As required	Per trade cycle	Cash margin or receivables assignment

 

2. Interest Rates & Charges

FAB pricing blends competitive margins over reference rates and flat SME rates under government schemes. All fees exclude 5% VAT.

SME Growth Loan

• Profit Rate: Below-market (e.g., 4%–6% p.a.).
• Processing Fee: Nil for government-backed portion; 1% on co-lent portion.
• Early Repayment Fee:
• Late-Payment Penal Rate: 2% p.a. on overdue amount.

Working Capital Revolver

• Rate Structure: EIBOR + 1.5%–3.0% margin.
• Arrangement Fee:25%–0.50% of sanctioned limit (min AED 5,000).
• Commitment Fee:25%–0.35% p.a. on undrawn line.
• Late-Payment Fee: 2% p.a. on drawn overdue.

Term Loan

• Rate Structure: EIBOR + 1.75%–2.75% margin.
• Processing Fee:50%–1.00% of loan amount (min AED 5,000; max AED 50,000).
• Early Settlement Fee: 1% of outstanding principal.
• Drawdown Amendment: AED 500 per amendment.

Equipment Finance

• Rate Structure: EIBOR + 1.75% margin or flat lease rate 6%–8% p.a.
• Processing Fee:75% of equipment value (min AED 3,000).
• End-of-Lease Purchase Option: 1% of outstanding purchase price.

Commercial Real Estate Loan

• Rate Structure: Fixed introductory rate 3.00%–5.00% for initial 2–5 years, then EIBOR + 1.75%–2.25% margin.
• Processing Fee: 1% of property value (min AED 10,000; max AED 100,000).
• Valuation Fee: AED 2,500 per property valuation.
• Early Repayment: 1% of outstanding principal or flat AED 25,000 (higher).

Trade Finance

• Issuance Fee:15%–0.30% of LC/Guarantee amount (min AED 500).
• Document Handling Fee: AED 200 per shipment.
• Acceptance Commission:05%–0.15% p.a. on accepted amount.

3. Eligibility Criteria

• SME Growth Loan:
  • UAE-registered SME with 1–10 years operation; turnover ≤ AED 100 million.
  • Must meet EDB scheme requirements.
• Working Capital & Term Loans:
  • 2+ years trading history; audited financials.
  • Minimum turnover AED 5 million for larger corporate loans.
• Equipment & Real Estate Finance:
  • 2+ years trading; sound asset maintenance records.
  • Real estate: property located in UAE commercial zones.
• Trade Finance:
  • Importers/exporters with documented trade cycle; DBR < 65%.