RAKBANK Business Loan

Minimum Salary
0,00 د.إ

Description

For small enterprises and startups, the SME Business Loan offers quick, collateral-light financing. For asset-driven needs, the Equipment & Vehicle Finance is tailored to machinery and fleet acquisition. Commercial Property Loans suit real-estate investments, while Merchant Financing and Trade Finance support turnover backed by receivables or letters of credit.

Features

  1. Product Suite Overview
Facility Name Purpose Maximum Facility Tenor Collateral / Security
SME Business Loan Working capital, CAPEX AED 3 million¹ 12–60 months Unsecured up to AED 500k; corporate guarantee above
Equipment & Vehicle Finance Purchase of machinery, vehicles, ICT AED 10 million² 12–72 months Asset pledge; ownership assignment
Commercial Property Loan Buy or refinance commercial real estate AED 25 million³ Up to 180 months (15 years) Mortgage lien on property
Merchant Financing Receivables-backed working capital AED 1 million Up to 36 months Assignment of receivables
Trade Finance Letters of credit, guarantees, import/export As required Per trade cycle Cash margin or charge over assets

 

¹ Subject to credit assessment and minimum turnover AED 1 million.
² Up to 100% financing including insurance and registration costs.
³ Up to 70% of property value; 30% minimum equity contribution.

  1. Interest Rates & Charges

All rates exclude 5% VAT.

SME Business Loan

  • Fixed Rate:5%–12.5% p.a. (reducing balance)
  • Processing Fee:0% of loan amount (min AED 500; max AED 2,500)
  • Early Settlement Fee:0% of outstanding balance
  • Late Payment Fee: AED 150 per installment

Equipment & Vehicle Finance

  • Fixed Rate:0%–10.0% p.a.
  • Processing Fee:25% of financed amount (min AED 750)
  • Early Settlement:0% of outstanding principal
  • Late Payment Fee: AED 200 per missed installment

Commercial Property Loan

  • Fixed Introductory Rate:99%–6.99% p.a. for initial 3–5 years
  • Variable Rate: EIBOR + 1.75% margin thereafter
  • Processing Fee:0% of property value (min AED 5,000)
  • Valuation Fee: AED 2,000 per property
  • Early Repayment Fee:0% of outstanding or AED 10,000 (whichever higher)

Merchant Financing

  • Rate:0%–14.0% p.a. flat or reducing balance
  • Processing Fee:5% of loan amount
  • Early Settlement Fee:0% of outstanding
  • Late Payment Fee: AED 100 per missed installment

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
  1. Eligibility Criteria
  • Trading History: ≥ 1 year for SME and Merchant; ≥ 2 years for Property and Equipment loans
  • Annual Turnover: ≥ AED 1 million for SME and Merchant; varies by facility
  • Credit Profile: Clean business and owner credit history
  • Bank Relationship: Minimum 6 months with RAKBANK, maintaining average balance AED 20 000

Documents Required

  1. Completed RAKBANK Business Loan application
  2. Valid Trade License and Commercial Registration
  3. Memorandum & Articles of Association; corporate resolution for corporates
  4. Audited financial statements (last 1–2 years) for loans > AED 500 000
  5. Six months of business bank statements
  6. Emirates ID, passports, and UAE visas of authorized signatories
  7. Property title deeds (Property Loan) or equipment invoices (Equipment Finance)
  8. Merchant agreement or POS statements (Merchant Financing)

Additional Info

  • Collateral-Light Funding: Unsecured SME loans up to AED 500 000
  • High LTV Asset Finance: Up to 100% financing for equipment and 70% for property
  • Tailored Tenors: Flexible repayment schedules from 12 months to 15 years
  • Predictable Costs: Fixed rates or fixed intro-periods for cash flow stability
  • Fast Approvals: Credit decisions within 48–72 hours for SME and Merchant loans
  • Dedicated Relationship Support: Sector-focused RM guidance and advisory
  • Digital Servicing: Online applications, drawdowns, and repayments via RAKBANK Business Portal

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