Business Finance - Machinery Finance | RAKislamic UAE

Machinery Finance

Invest in machinery and commercial assets to expand your business

Machinery Finance - FAQ's

<ul>
<li style="font-weight: 400;" aria-level="1">It is mandatory to have a Current Account with the Bank, from where the instalment / EMI will be serviced. Use of the Current Account will be governed by the Terms and Conditions Governing Business Accounts available on the website www.rakbank.ae.</li>
<li style="font-weight: 400;" aria-level="1">Pay all instalments and other amounts due on the due dates without delay.</li>
<li style="font-weight: 400;" aria-level="1">Review this document and all other terms and conditions set out in the facility documents / application form in detail.</li>
<li style="font-weight: 400;" aria-level="1">Regularly check our website (www.rakbank.ae) for updates.</li>
<li style="font-weight: 400;" aria-level="1">Always safeguard sensitive banking details such as Account number, chequebook, Debit Card, login ID, passwords, PIN, etc.</li>
<li style="font-weight: 400;" aria-level="1">Notify the Bank in writing prior to making any changes to ownership or management of the Company as was declared during the application process and seek consent; and</li>
<li style="font-weight: 400;" aria-level="1">Notify the Bank in writing if you wish to prepay your Finance prior to its maturity.</li>
</ul>

Customer Rights and Obligations

Disclaimer:
VAT at the current rate of 5% will be levied on the Bank's fees and charges, as applicable under UAE law.

Terms And Conditions

Terms and Conditions

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Machinery Finance is available in Islamic and non-Islamic variants.

Eligibility

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Deferral allowed, at Bank's discretion 

Re-finance options

If you currently have finance on your existing machinery and equipment, we can assist with re-financing options depending on the equipment as well as its age and condition.

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Islamic

With Salary Transfer

Maximum finance amount of up to AED 3 million

Max finance amount up to AED 3 Million

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Finance Features

Unlock your SME's growth potential and expand your business by investing in machinery and other commercial assets. Benefit from a financing of up to AED 3 Million with a Machinery Finance tailored to suit your specific needs.
Whether the investment is small or large, we can help.

Your financing partner

Apply for the best business equipment finances for your business. RAKislamic offers you the best services for your business equipment loan. Learn more.


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Issuance of Liability Certificate

Flexible payment options

Have your new equipment earning for your business while you enjoy the freedom of payment periods of up to 60 months. 
We offer finance amounts of up to AED 3 million so you can upgrade your existing equipment or expand operations, helping you to achieve your business goals.

Takaful Finance Shield

With our Finance Shield, you can have peace of mind knowing that your business is protected in the event of the unexpected. In case of the death of a customer due to a covered cause during the coverage period, our Finance Shield will indemnify the outstanding finance amount. 
 
This means that your business won't have to worry about the burden of paying the finance in such a difficult time. So, protect your business and its financial future with our Business Takaful Finance Shield.

<ul>
<li>Customer contribution towards machinery procurement is to be confirmed in order to proceed with the approval.</li>
<li aria-level="1">Once the Finance is disbursed, the Bank will pay the asset supplier directly, or alternatively, place the disbursed funds under lien until such time the details to pay the supplier are in order. However, profit will continue to apply on the full Finance outstanding even if part or all of the Finance proceeds are under lien.</li>
<li aria-level="1">Last monthly commitment amount could vary depending on the moratorium period, changes in floating rate indices, and payment delays.</li>
<li aria-level="1">If you fail to make any payment due under the Finance or otherwise breach our terms, we reserve the right to repossess the asset, if applicable and liquidate / sell the same to settle the outstanding amount.</li>
<li aria-level="1">No more than 2 deferrals of monthly commitment are allowed a year.</li>
<li aria-level="1">The Bank may reject requests for monthly commitment deferral if payments are irregular, or if there are 4 cheque / Direct Debit System (DDS) returns in the last 12 months or if the request does not meet the Bank&rsquo;s internal risk policy requirements.</li>
</ul>

Risks and Limitations 

RAKislamic offers business equipment finances for commercial vehicles. Get a wide range of advantages on finance for a broad range of assets. Visit RAKBANK.


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Commercial Vehicles

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Commercial Vehicles Finance

Other fees:
<ul>
<li style="font-weight: 400;" aria-level="1">Due diligence, documentation and processing fees (if any) at the time of onboarding will be quoted as a percentage of the Finance amount, but not exceeding 2.5%</li>
<li style="font-weight: 400;" aria-level="1">Donation amount if the EMI due is not paid by the due date:</li>
<ul>
<li style="font-weight: 400;" aria-level="2">1 EMI overdue - AED 300</li>
<li style="font-weight: 400;" aria-level="2">2 EMIs overdue - AED 400</li>
<li style="font-weight: 400;" aria-level="2">over 2 EMIs overdue - AED 550</li>
</ul>
</ul>
Disclaimer:
VAT at the current rate of 5% will be levied on the Bank's fees and charges, as applicable under UAE law.
For full details of our Machinery Finance fees and charges, please refer to our <a title="Machinery Finance Service and Price Guide" href="/globalassets/rakbank/all-pdfs/002---islamic---service-and-price-guides/bilingual/009-j00807-sp-vat-business-finance-islamic.pdf">Service and Price Guide</a>.

Fees

Profit rate from 14% to 20% reducing p.a. 

Profit rate: 14% to 20%, reducing annually. Approved finances disburse at reducing rates

FAQ's Item (3)

Machinery Finance - Cross Sell

You can apply for this product using <a href="https://rakbankonline.ae/Digital/AuthenticationController?FORMSGROUP_ID__=AuthenticationFG&amp;__START_TRAN_FLAG__=Y&amp;__FG_BUTTONS__=LOAD&amp;ACTION.LOAD=Y&amp;AuthenticationFG.LOGIN_FLAG=1&amp;BANK_ID=RAK&amp;USER_TYPE=1" target="_blank" rel="noopener">RAKBANK Digital Banking</a>. Here are the steps: 1.Go to&nbsp;<a href="http://www.rakbank.ae/" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=http://www.rakbank.ae&amp;source=gmail&amp;ust=1687508562826000&amp;usg=AOvVaw02TXDJiNUympHIWw84JK-0">www.rakbank.ae</a> 2.Select the &ldquo;Business&rdquo; from Digital Banking login type 3.Login using your Username &amp; Password 4.Click on "Discover &amp; Apply" 5.Select the desired product

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FAQ's Item (2)

<ul>
<li style="font-weight: 400;" aria-level="1">An approval for the Finance, once sanctioned, is only valid for 30 days from the date of approval, and the Finance disbursal must be completed before that so as not to lose time, failing which re-approvals need to be sought internally.</li>
<li style="font-weight: 400;" aria-level="1">The appointed Agent shall sign the relevant documents and undertaking on your behalf as per Salam structure.</li>
<li style="font-weight: 400;" aria-level="1">If you pay off the Finance prior to the due date, you will pay prepayment charges at the rates described in the Service &amp; Price Guide.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">If you are late in payment or fail to make a payment on the due date, you will pay a donation amount at the rates described in the Service &amp; Price Guide.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">If you fail to make a payment, or otherwise breach the Finance terms, this will be considered a default and the Bank will be entitled, among other things, to:</li>
</ul>
(a) Charge a donation amount of 2% p.a. for noncompliance to the finance sanction terms;
(b) Cancel the Finance and demand full delivery of the outstanding commodities immediately;
(c) Report the default to the appropriate regulatory authorities and credit rating agencies, which will affect your credit rating;
(d) Bring legal proceedings against you.

Warnings

Payment: Monthly Commitment (Equated Monthly Instalment)

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Islamic SME Machinery Finance

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AED 5,000-19,999

AED 10,000-14,999

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Key Fact Statement

Service and Price Guide

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<ul>
<li style="font-weight: 400;" aria-level="1">The Bank may amend the features, fees, charges, terms and conditions of the Finance with 60 days&rsquo; notice to you in advance.</li>
<li style="font-weight: 400;" aria-level="1">The Bank may amend the profit rates for the Finance with 30 days&rsquo; notice to you in advance.</li>
</ul>

Key Terms and Conditions

Processing, due diligence & documentation fees: up to 2% of the finance amount

Processing and other fees: % of finance, up to 2% max of the amount

To apply for a Machinery Finance, you must:
<ul>
<li style="font-weight: 400;" aria-level="1">have a valid trade licence</li>
<li style="font-weight: 400;" aria-level="1">provide other business documents such as Memorandum of Articles, or Power of Attorney (if applicable)</li>
<li style="font-weight: 400;" aria-level="1">provide other banking or financing assessment information / document (if and as applicable)</li>
<li style="font-weight: 400;" aria-level="1">meet the Bank&rsquo;s financing criteria</li>
</ul>

Requirements

Partial or full early settlement of Finance (% of settled amount)

Partial or full early settlement of Loan (% of settled amount)

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Terms and Conditions Notification

Important Information

FAQ Accordion Items

Eligibility & Fees 

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Maximum tenure: 60 months

Max tenor: 60 months

Benefits

AED 30,000 & above

Not sure about something? Check our frequently asked questions to find what you’re looking for.

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FAQs

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Needs-based finance

Our team is dedicated to helping you find the financing solution that's right for you. 
 
That's why we conduct a thorough financial assessment based on the specific machinery you need, ensuring that you get the support you need to grow your business efficiently and effectively. 
 
With our personalised approach to Machinery Financing, you can rest easy knowing that you're in good hands.

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Scan the QR code to download the RAKBANK Business app from the Apple App Store

Download the RAKBANK Business app!

Simplify your banking experience with our feature-rich app. From payments to payroll, our comprehensive Banking Solutions provide everything you need to manage your business finances from one secure and easy-to-use platform.

Finance Features

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Eligibility & Fees

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