Securing money for a new business set up is just like holding sand in your palms. It almost becomes inevitable to secure a loan to accomplish the requirements of a business. However, it is a tough job to get a loan being a new face in Dubai. To secure a loan the best way seems to be family and friends, but, these institutional loans must not be overlooked too.

Dubai banking solutions may be stingy for a new face but being lawful can get you better loan opportunities for starting a business.

There are varieties of loans that are offered by Dubai financial institutions to support the credit system.

• Personal loan: personal loans are acquired by those people who are in need of large amounts. They can be acquired from 10 times to 27 times of the limit of the salary. This limit may vary accordingly to the duration devoted to the job. This loan is basically approved over the bank account an employee have in a bank being sponsored by employer. Hence, to be eligible for personal loan, it is mandatory that your employer must be listed as an approved client of the bang in order to get the application accepted. This loan however, features high rate of interest as compared to other loans.

• Auto loan: this category of loans fit for the people having small and short term needs. The amount is generally lower as compared to the amount in personal loan but the low interest feature benefits the debtor. This loan is secured against purchase of a new vehicle. That vehicle cannot be exported as it is owned partially by the loan provider bank; hence, complete ownership can be transferred only after the full repayment of loan. Moreover, this loan features easy availability and easy repayments as compared to personal loans.

• Home loans: as the name denotes, this loan is raised against the purchase of home for any person. It needs complying thorough formalities to raise these loans. These loans are higher in amounts and thus considerable amount of paperwork is needed. It may need existing residence proof along with tenant’s agreement. This document contains the details of the rent paid to tenants and is serves as a proof of authenticity on the part of home seeker.

Just few words that re to be kept in mind while raising any kind of loan.

• Don’t carry heavy baggage of interest if it is not necessary. It should be always kept in mind that it is never advisable to raise a loan in case you have that kind of resources available to raise the desired amounts. The interest rates always deplete the lender’s benefit and there is no need to carry a monkey on your back when not required.

• Always keep in mind that if you are in need of loan, then the banks are also seeking for loan taker. It’s their business and this dealing would serve either purposes. Hence, it’s not only you who must go through all compromises. It’s your right to negotiate with them to have better deals.

• Be prepared while approaching to banker’s office with cash flow statements and financial statements accompanies with completed loan application form. Project this loan as a low-risk proposition to the banker.

• Be professional. Wear professional outlook and talk professionally as it is a professional deal and deserve such treatment.

• Get your home work done thoroughly. Anticipate the questions that may be raised and prepare factual answers for them. Try and support your statements with solid proof. In case you do not have solid substance for support, avoid making such statements.