REQUEST FOR ASSET FUNDING

  • Service Description:

    Asset Funding Loan provided by Dubai SME is an interest-free product in which the Foundation covers a maximum of 80% of the value of assets and is reimbursed by the entrepreneur in monthly installments.

  • Service Structure and Type:

    Subsidiary Procedural Service

  • Service Requirements:

    • Copy of National ID.
    • Copy of the Passport.
    • Copy of the Family Book.
    • Trade license + copy of the memorandum of association (not required for institutions owned by one individual) + office from Ejari + warehouse from Ejari (if any) + list of employees registered with the Ministry of Labor.
    • Last 2 Year's Audited Financials / In House Financials + Bank Statements (for 6 months). In case of multiple active company accounts held by different banks, all accounts statements are required for audit.
    • Original invoice/ price offer from authorized supplier/ distributor/ plant.
    • NOTE: The institution's credit team may request additional documentation.
  • Customer Journey steps:

    1. Sign up in the Fund's website: thefund.ae
    2. Initial approval of the request and guiding the applicant in submitting the request for funding.
    3. The applicant meeting with the fund team to review the work plan, the financial plan, and related documents.
    4. The applicant uploads the documents through the fund's website.
    5. Field visit to view the existing project (if required).
    6. Presenting the idea/ request to the credit committee.
    7. The applicant signs the financing contract and the payment schedule, in addition to other documents, and obtains copies of them.
  • Service Correlation with Other Services:

    Request for Consultation in Funding

  • Service Limitation

    • The trade license of the company is valid and all necessary legal approvals are available.
    • The equity ratio must be 80:20 (the applicant must have a minimum equity contribution of 20%).
    • The total period should not exceed 72 months (6 years) from the date of signing the contract (including maximum 12 months grace period).
    • Company insurance coverage is mandatory.
    • Its assets will be mortgaged to the Emirates Integrated Registries Company (EIRC) for the registration of movable and pledged assets.
    • The applicant will be charged the fixed administrative fees to cover the mortgage service fees with the Emirates Integrated Registries Company (EIRC) and the Roads and Transport Authority.
    • Submitting equal monthly installment checks + a security check for the finance amount (according to the fund's policy).
    • Signing an agreement with the institution in the presence of a notary public.
    • The company must cover the cost of the notary.
    • Financing previously owned/used assets is allowed on a case by case basis.
    • The evaluation of the asset is to be submitted by an approved appraisal body.
    • Refinancing is limited to existing unencumbered assets.
    • The purchase or sale of a controlling interest in/acquisition of the company is prohibited.
    • The company can benefit from other asset financing provided that the first asset financing is fully settled subject to MBRF’s review & approval
  • Service Provision Channels

    Mohammed Bin Rashid Fund for SME Website: thefund.ae

  • Expected Service Completion Time:

    90 days.

  • Expecting Waiting Time:

    30 Minutes

  • Beneficiary:

    Individuals Category - New Entrepreneurs from Citizens.
    Members Category - National Projects Owners.

  • Service Fees (if any):

    None

  • Service Delivery Times:

    24/7

  • Frequently Asked Questions:

    What are the terms and conditions?
    The beneficiary shall be a UAE national
    The enterprise shall be wholly owned and managed by UAE national(s) Enterprise to be located in Dubai.
    The applicant shall not obtain more than 5 trade licenses in the Emirate of Dubai. In case of existing enterprises funding, the applicant shall not obtain more than 6 trade licenses in the Emirate of Dubai
    The validity of the trade license shall not exceed 5 years The age of the enterpriser shall not be less than 21

    What is the maximum amount to fund assets?
    The maximum limit is 300,000 dirhams.

    How much is the interest rate?
    None

    What is the maximum grace period in asset financing?
    1 year (12 months).


Smile Button

Thank you for your feedback