Mashreqbank offers unsecured overdraft

04 Apr 2007

Dubai: Mashreqbank has launched an unsecured overdraft facility for merchants against their point of sale (PoS) receivables, a first of its kind in the market.

Atif Bajwa, head of Retail Banking Group, Mashreqbank, said: "At Mashreqbank, we have always believed in partnering our customers' growth and offering our customers the very best propositions - innovative while remaining simple and transparent from the customer's perspective.

"Mashreqbank Merchant Overdraft, we believe, will help us enhance our relationship with our existing merchant customers, and going forward, build strong relationships with new customers."

First facility

The instrument is the the first standalone unsecured business overdraft offering in the market.

It allows customers involved in retail trading to leverage their existing business flows and catapult to the next level.

The application and approval process has been kept simple for the convenience of customers. The proposition is offered in combination with a value-added current account.

Retailing is booming in the UAE with the sector estimated to be worth $100 billion. It is a significant contributor to the GDP, with growth rate next only to the real estate sector.

The next few years are expected to remain promising for the sector.

Shopping space in Dubai is expected to treble to over four million square metres by the end of 2010, from under 1.5 million square metres in 2006.