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Article 2: Categories

C 7/2020 Effective from 14/11/2020
  1. LCAs are categorised according to lending volume:
     
    1. Category 1 (Large): Cumulative loans facilitated in a calendar year AED 5,000,000 and above; or
       
    2. Category 2 (Small): Cumulative loans facilitated in a calendar year below AED 5,000,000.
       
  2. For the purpose of the above, the references to lending volume shall mean either:
     
    1. Cumulative loans in the preceding year(s); or
       
    2. In the case of new applicants, the projected / forecasted volume for the current year(s).
       
  3. The company wishing to undertake LCAs must apply to the Central Bank for an LCAs license. Such a license will be issued either as a Category 1 or Category 2 as per the definitions in Article 2 (1).
     
  4. A crowdfunding company that is licensed to operate as Category 2 and wishes to upgrade its license to Category 1 status, must evidence that it meets all regulatory requirements for a Category 1 license before any application to upgrade can be considered.
     
  5. Once a crowdfunding company is deemed to be Category 1 it cannot be deemed Category 2 again without prior written approval from the Central Bank.