Emirates Development Bank to approve loans to SMEs and startups up to $1.3m within five days

ABU DHABI: Emirates Development Bank (EDB), the main financial engine of the economic diversification and industrial transformation program of the United Arab Emirates, has announced a new loan functionality that allows small and medium-sized enterprises (SMEs) and startups to apply loans of up to AED 5 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, marking a major step to improve access to finance for SMEs and further simplify the ease of do business in the country.

The loan service will be available to UAE-based SMEs and startups operating in one of EDB’s five priority sectors, namely manufacturing, healthcare, food safety, advanced technologies and infrastructure, and is available for different durations up to 60 months. Additionally, these can be redeemed through EDB’s digital banking app, powered by UAE-based fintech YAP, enabling SMEs and startups to start their business, providing a business bank account and a IBAN number within 48 hours, then offering a full range of fast, secure and 24-hour banking services.

Commenting on the partnership, Ahmed Mohamed Al Naqbi, Managing Director of EDB, said: “It is clear that quick access to finance is one of the biggest challenges that SMEs and startups face. Through EDB’s partnership with Beehive, our recently launched loan service will provide SMEs and startups with fast and efficient access to loans of up to AED 5 million through our digital banking app.

“SMEs play an important role in the UAE’s vision of becoming a diversified economy and help make the UAE a global hub for investment. We continuously seek to collaborate with fintech companies and financial partners to facilitate the SME financing process and enable rapid financing and easy access to the bank’s financial services Our new initiative marks an important milestone for EDB and is part of our new strategy, which supports small businesses operating in our sectors priority,” he added.

Craig Moore, Founder and Managing Director of Beehive, said, “Our partnership with EDB is key to increasing access to financing for SMEs, enabling growth and providing more opportunities. Combined with our market-leading products, this partnership aims to ease the financial burden for business owners, facilitating inclusive economic prosperity for SMEs across the UAE. »

Masood Khan, CEO of YAP UAE, said the service highlighted the evolution of bank lending. “Our partnership with EDB shows how we are reimagining and modernizing our business lending offering, providing new opportunities for SMEs and driving profitable growth. By helping the entire SME ecosystem and community, YAP and EDB are purely digital players in SME lending, focusing on customer needs, innovative product features and faster results.”

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