By Staff writer
Mohammed bin Rashid Fund for SME increases maximum limit of seed capital loan to AED1m
Dubai SME has doubled the loan limits available to Emirati entrepreneurs under the Mohammed bin Rashid Fund for SME, a government initiative established by a law in April.
Aimed at maximising financing solutions for innovative businesses and developing Emirati entrepreneurs, the fund’s assets exceed AED600 million ($163.3 million).
Now it has increased the maximum limit of its seed capital loan from AED500,000 to AED1 million while keeping the AED5 million maximum limit for the credit scheme loan which is offered by selected banks in the UAE and guaranteed by the fund for up to 80 percent.
"This initiative is aimed at maximising financial solutions available to Emirati entrepreneurs," said Abdul Baset Al Janahi, CEO of Dubai SME and managing director of the Fund.
"The financing limit was doubled due to the increasing demand on free of interest loans and the scarcity of financing solutions that support entrepreneurs to incorporate innovation and technology into their businesses, in line with smart digital solutions, and provide stronger presence in the market and increase their competitiveness."
Saeed Matar Al Marri, deputy CEO of Dubai SME and director of the Fund, added: "The role of the Fund is not limited to providing financial solutions. It also encourages entrepreneurs to benefit from the guidance provided by Dubai SME, whether at the initial stages of the project or throughout its operation."
The seed loan is provided directly to entrepreneurs following the completion of the required procedures.
Projects considered by the fund should be based in Dubai and fully owned by an Emirati. The fund will monitor the funded projects through reviewing its business reports and field visits and offering advice to entrepreneurs as and when needed.
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