Terms and Conditions:
1. ELIGIBILITY
Eligibility for services and facilities provided by the Bank would require satisfying the following conditions:
• UAE / GCC equity participation must be at least 51%
• The project must be located in UAE
• The project should have appropriate licenses issued by the UAE Ministry of Finance & Industry, or Provisional Approval for a new project to be established
The project should be viable from economic, financial and marketing point of view.
2. LENDING PRIORITIES
The Bank will give priority to the following industries:
• Industries that employ modern technology and adopt capital-intensive approach
• Industries that depend on local resources (capital, energy, materials, etc.), and market their products locally and abroad.
• Import substitution industries
3. LOAN LIMITS
The Bank's loan amount for any project shall not exceed 7% of the Bank's Capital Account and reserves or 70% of the project's total cost (including three months working capital), whichever is lower. Total Loan amounts for Projects belonging to a group of companies shall not exceed 14% of the Bank's Capital Account.
The minimum loan amount that a project can get from EIB is AED 250,000.
4. SECURITIES
One or more of the following securities will be required for the loan:
• Fixed assets, not to exceed 70% of the book values as per Bank's evaluation
• Salable lands owned by the promoters
• Properties other than the one personally dwelt by the promoters
• Personal guarantee of owner(s)
• Shares Certificate
• Bank Deposits & Investment Certificates
• Bank guarantees to cover the principal of the loan as well as the interests and the administrative charges for six months
• Other securities accepted by the Bank's management
5. FINANCIAL CHARGES
Charges for the Bank's Financing Services are determined based on EIBOR plus a certain margin. Currently financial charges vary between 3% to 5% per annum on a reducing balance basis. However, for Murabaha & Estisna'a Facilities Profit Margins of 3-5% per annum are charged on flat rate basis for the whole loan period.
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