QNB expanding its credit portfolio with SME focus to support Qatar economy

QNB has expanded its credit portfolio with special emphasis to the country’s small and medium enterprises (SME) sector as part of its strategy to enhance the value addition in the economy and to increase its core earnings.

In this regard, the bank has launched seven new products which include a 24-hour decision time for account turnover facilities and professional loans, tailored products for manufacturing, tourism, education, medical and healthcare sectors and the introduction of a dedicated SME Business World Credit Card.

“Our continued growth of SME unit enables us to continue adding to our product offering...Our seven new product offerings are designed to meet the growing market and customer demands for enhanced finance facilities and these are aligned to and work in collaboration with our numerous government and private sector partners,” Hamad al-Jamali, acting head of SMEs, said.

Turnover facility supports companies with an annual bank account turnover of between QR2mn and QR20mn and companies that bank with any bank in Qatar are eligible to apply. Sponsors will need to provide a valid CR or the company’s incorporation documents, bank account statements covering at least one year and financial accounts. Alternatively, a set of valid management accounts will suffice to be eligible.

Successful loan applications will benefit from an overdraft facility which is up to 10% of the annual bank account turnover, a QNB spokesman said.

Professional loan facility is aimed at addressing the needs of professional services entities in the fields of engineering, engineering consultancies, medical and pharmaceutical related companies, legal consultancies, financial advisory/consultancy offices, accounting and audit offices.

The professional sectors facility is offered to companies that have been operating for more than one year, the spokesman said, adding companies that ‘bank’ with any bank in Qatar are also eligible to apply.

Facilities can reach up to QR2mn. All loans will be disbursed in multiple tranches. The first tranche will be up to a maximum of QR500,000 and the balance will follow once the bank is satisfied that the previous tranche was successfully invested in the business.

Sponsors will need to provide proof of their monthly income and financial commitments along with a valid commercial registration or licence or applicable document establishing the borrower as a separate legal entity.

QNB’s objective of the two facilities is to enable Qatari entrepreneurs and SME owners gain access to funding quickly through a simple process. The application requirements for both loans have been kept to the minimum to ensure a 24-hour decision time for applicants with a QNB corporate bank account.

Approvals are subject to all terms and conditions being satisfied and that all applicants must have clean credit bureau reports.

In addition to the above two product launches, QNB is also extending its support to the manufacturing, tourism, education and medical and healthcare sectors.

These sectors can basically avail any number or combination of financial products. The options available cover equipment, infrastructure loans, business buy-out, vehicle loan and lease, working capital, raw material and refinancing of existing term loans or working capital.

The medical and pharmaceutical sector will also have finance towards medical equipment, medical facility; education sector can opt for education equipment and premises and tourism and leisure industry asset finance and tourism premises.

Through SME Business World Credit Card, the sector can manage and control the daily business expenses in a convenient and easy way. The credit card will be made available within a couple of days allowing SMEs quick and reliable access to finance.