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Overdraft Against Property : Key Features
The scheme aims at providing finance for working capital finance against immoveable property
Single line of credit for working capital such as Overdraft, Trust Receipts, BP/BD/LCD, short term demand loans, Letter of Credit, Bank Guarantee, etc. immoveable property
Loan amount: 50% of the market value of the property to be mortgaged (60% in case the third-party guarantee of adequate worth is available in addition to the property to be mortgaged) maximum AED 5 million
Period: Renewable annually. Can be availed of in the form of loans repayable in 36 months
Overdraft Against Property : Eligibility
All business/service concerns having sales turnover upto AED 100 million and undertaking the business of trading in goods and services
Security: Assignment/mortgage of the immoveable property/personal guarantee, etc.
Overdraft Against Property : Charges
Rate of interest*: Competitive sate of interest prevailing at the time of sanction
*Terms: Rates and charges are subject to change from time to time
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What is an overdraft against property?
An overdraft against property is a loan secured by immovable property, providing borrowers with a flexible line of credit up to a predetermined limit. A major benefit of loan against property is that interest is applied solely to the amount withdrawn, allowing borrowers to access funds as needed.
What are the eligibility criteria to apply for an overdraft against property?
Eligible entities to apply for an overdraft against property
- Sole proprietorship firms
- Partnership firms
- Free Zone establishments
- Any other constitute, except LLC firms
Qualifying criteria for overdraft application
- Engaged in the trade of goods or services
- Annual sales of up to AED 20.000 million
- Individuals are not eligible under the scheme, as per central bank guidelines.
How do I apply for an overdraft against property with Bank of Baroda UAE?