REQUEST FOR TERM FINANCE LOAN

  • Service Description:

    It is a loan offered to entrepreneurs who are facing difficulties in meeting the payments of their expenses when they are due. It is an interest-free product in which the Mohammed Bin Rashid Fund for Small and Medium Enterprises Development ("the Corporation") covers the company's expenses and is reimbursed by the entrepreneur in the form of monthly payments.

  • 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)
    • 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.
    • Company profile/ Feasibility study.
    • Valid lease/ Invoice or Offer of Prices from authorized supplier/ distributor/ plant
    • NOTE: The Foundation'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 total period must not exceed 24 months (two years) from the date of the first payment.
    • Funding Amount: The maximum limit is 500,000 dirhams.
    • Grace period: N/A
    • Mandatory insurance coverage for the company.
    • Its assets will be mortgaged to the Emirates Integrated Registries Company (EIRC) for the registration of movable and pledged assets.
    • Submitting equal monthly installment checks + a security check for the finance amount (according to the fund's policy).
    • Signing the company's mortgage agreement with the Foundation in the presence of a notary public.
    • The company must cover the cost of the notary.
    • The purchase or sale of a controlling interest in/acquisition of the company is prohibited
    • The company can avail another short-term financing after full settlement of the first short-term financing 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)
    • The enterprise (new or existing) shall be in Emirate of 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 projects cannot be funded?

    • Real estate and construction companies
    • Gold Trading Companies
    • Shisha-featured restaurants and cafes
    • Document clearing entities and Brokerage firms.
    • Cafes and Shops Serving Tobacco.
    • Consultancy/advisory firms.
    • Public  benefit organizations.
    • Pets Trading and Services.
    • Car Rental Companies
    • Recruitment Agencies
    • Trading in Nationally / Internationally Banned Products
    • Food and Beverage Activities
    • Food Trading
    • General trade
    • Beauty Centers and Salons
    • Other activities not followed by Sharia Compliant

    What is the maximum loan amount through the fund?
    500.000 Dirhams.

    How much is the interest rate?
    None

    How long is the repayment period?
    A maximum period of two years (24 months).


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