Companies in the UAE seeking expeditious financial help for purchasing raw materials can now knock on the doors of the Emirates Industrial Bank (EIB).

Under a new service EIB has launched to provide quick funds to industrial units for raw material needs, the maximum amount that will be offered is Dh5 million ($1.36 million). To qualify, industrial establishments should be in operation for a year and audited financial statements should support them.

Another requirement is that UAE or GCC promoters should own at least 51 per cent of the project which should have a valid industrial licence from the UAE Ministry of Finance and Industry.

EIB will charge Dh300 at the time of application for financing. The maximum amount that will be sanctioned will not exceed six months of raw material requirements or Dh5 million, which ever is lower. The minimum amount on offer will be Dh250,000.

The money must be repaid in a maximum of two years, without a grace period. Each withdrawal or payment to suppliers must be repaid along with the financing charges within six months from the date of disbursement.

There is also a provision for multiple withdrawals and payments. For loans, charges include a four per cent annual interest and 0.5 per cent administrative fee on the outstanding amount. For 'Murabaha', 4.5 per cent will be charged.

Applications for financing are available at EIB offices in Abu Dhabi and Dubai. Raw materials cover unprocessed, semi-processed and processed materials, which will be converted by the industrial unit.