UAE: Bank to approve loans up to Dh5 million within 5 days to SMEs, start-ups

Emirates Development Bank (EDB), the key financial engine of the UAE’s economic diversification and industrial transformation agenda, has announced a new lending feature that allows small and medium enterprises (SMEs), and start-ups, to apply for loans of up to Dh5 million directly through its Digital Banking App, and receive approval or feedback within five days.

The service, in partnership with peer-to-peer (P2P) lending platform "Beehive", is the first of its kind in the UAE. Its introduction marks a major milestone in the enhancement of access to finance for SMEs and further simplifies the ease of doing business in the country.

The lending service will be available for UAE-based SMEs and start-ups operating in one of EDB’s five priority sectors, which are: manufacturing, healthcare, food security, advanced technology, and infrastructure. It is available on various tenors of up to 60 months.

These can be availed through EDB’s Digital Banking App, powered by leading UAE-based fintech YAP — enabling SMEs and start-ups to kick-start their businesses by providing a business bank account and an IBAN number within 48 hours, and then offering a comprehensive range of fast, secure, and round-the-clock banking services.

Commenting on the partnership, Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, said: "It is clear that swift access to finance is one of the biggest challenges that SMEs and start-ups face. Through EDB’s partnership with Beehive, our newly launched lending service will offer SMEs and start-ups quick and efficient access to loans of up to Dh5 million through our digital banking app.

"SMEs play an important role in the UAE's vision of becoming a diversified economy. They also help shape the UAE as a global investment hub", he added.

"We are continuously looking to collaborate with fintech companies and financial partners to ease the financing process for SMEs and to allow for quick and easy access to the bank’s financial services. Our new initiative marks a major milestone for EDB and is in line with our new strategy, supporting small businesses that operate across our priority sectors,"

Craig Moore, Founder and Chief Executive Officer of Beehive, commented, "Our partnership with EDB is key to increasing the accessibility of financing to SMEs, enabling growth and providing more opportunities. Combined with our market-leading products, this partnership aims to ease financial burden for business owners, facilitating inclusive economic prosperity for SMEs across the UAE."

Masood Khan, YAP UAE CEO, stated that the service highlighted the evolution of bank lending. "Our partnership with EDB showcases how we are re-imagining and modernising our business-lending proposition, providing new opportunities for SMEs and promoting profitable growth.

By assisting the entire SME ecosystem and community, YAP and EDB are purely digital SME-lending players — focusing on customer needs, innovative product features and faster outcomes."

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