Term Loans | Demand Loan
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Key Fact Statement
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Eligibility
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Currency of Loan
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Facilities
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Purpose
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Loan Repayment
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Interest Rate
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Securities
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Key Fees and Service Charge
Term Loans | Demand Loan : Key Fact Statement
Term Loan/Demand Loan
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Term Loans | Demand Loan : Eligibility
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Entities licensed to operate in the UAE.
Term Loans | Demand Loan : Currency of Loan
- AED (Arab Emirates Dirham) / USD (US Dollar), subject to regulatory guidelines.
Term Loans | Demand Loan : Facilities
- Short Term Loan: up to 12 months
- Medium Term Loan: up to 5 years
- Long Term Loan: above 5 years
Term Loans | Demand Loan : Purpose
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For setting up new projects, expansion of existing unit, equipment purchase, or other capital expenditures, long-term funds requirement for any other general corporate purpose etc., except speculative purpose and activities prohibited by law.
Term Loans | Demand Loan : Loan Repayment
- Repayment shall be through equated or non-equated instalments, as per the agreed repayment schedule, comprising principal and interest. The repayment frequency may be monthly, quarterly, semi-annually or annually, as mutually agreed with the customer.
- Where appropriate, bullet repayment, step-up or step-down repayment structures may also be stipulated as per the agreed terms and repayment plan. Interest to be charged as and when debited.
Term Loans | Demand Loan : Interest Rate
- Emirates Interbank Offer Rate (“EIBOR”) (For credit facilities denominated in AED) / Secured Overnight Financing Rate (“SOFR”) (1, 3, 6, 12 months) (For credit facilities denominated in USD) + Margin = Effective Rate, based on the currency of limits sanctioned.
- A floating / variable interest rate linked to EIBOR / SOFR, as applicable, shall be charged by the Bank based on its assessment and the terms stipulated for the facility. Interest shall be calculated on the amount actually utilized under the facility and shall be debited to the customer’s account on a monthly basis, with the interest relating to each individual facility / utilization becoming payable as and when charged in the account.
Term Loans | Demand Loan : Securities
- Unsecured or secured as per the separate Facility Agreement signed with the Bank, detailing all Terms and Conditions.
- Security in the form of tangible assets, such as land, buildings and machinery, including assets to be acquired out of the Term Loan proceeds, and / or other collateral securities acceptable to the Bank at its discretion. The securities shall be duly registered with EIRC and / or the competent authority, as applicable.
- In addition, other forms of security which may include Guarantees from corporates, individuals or banks may also be required.
Term Loans | Demand Loan : Key Fees and Service Charge
| Key Fees and Service Charges | |
|---|---|
| Loan Processing Fee | As per the Facility Sanction Letter |
| Review / Renewal Charges (Annual basis) | As per the Facility Sanction Letter |
| Documentation Charges | As per the Facility Sanction Letter |
| Prepayment / Early Settlement / Foreclosure | As per the Facility Sanction Letter |
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Valuation Charges
Legal Fees / Charges |
Valuation is an independent assessment to determine the current value of the Primary / Collateral Security. Valuation fees of the valuer will be based on the scope of the valuation, size and type of the security. The expenses towards the same shall be borne by the borrower/s at actuals. |
| Work related to execution of documents and vetting of the documents will be carried out by the Bank’s legal department / Bank’s empanelled legal counsel. The expenses towards the same shall be borne by the borrower/s at actuals. | |
| Insurance of Securities | Adequate insurance cover for all assets of the entity, i.e. Primary / collateral security, to be taken as per the Bank’s guidelines and expenses to be borne by the borrower/s. Insurance shall be arranged by the Borrower/s at its own cost, with the policy duly assigned in favor of the Bank, as applicable. In case, if Borrower/s fails to arrange the Insurance, Bank may arrange it with charges to be debited to Borrower/s account. |
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What is a SME loan?
An SME is a business with fewer than 250 employees and annual revenues below AED 250 million. However, the definition may vary depending on the industry.
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What types of SME loans does Bank of Baroda UAE offer?
- We offer SME loans like working capital finance, term loans, and project finance.
- Our specialised setup and dedicated staff cater specifically to SME customers.
- We employ streamlined processes based on assembly line principles for faster turnaround time.
- Marketing/sales and credit processing/sanction are handled together for efficiency.
- Latest technology and skilled manpower are utilised to provide focused services.
- We have a strong understanding of industry/market developments for tailored solutions for SMEs.
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How do I open a SME loan account with Bank of Baroda UAE?
To open a SME loan account with Bank of Baroda UAE, fill out the application form, attach the necessary documents, and submit it at our branch.
