How much of the loan does Kafalat Innovative guarantee?
Kafalat Innovative currently guarantees 90% of the value of the loan granted by the bank and 90% of the accrued interest during the grace period + 3 months. (Examples). The value of the guarantee diminishes proportionally to the value of the outstanding loan as calculated in the repayment schedule.
Thus, Kafalat guarantees the repayment of 90% of the outstanding amount to the bank if the borrower fails to repay. However, the borrower is liable for the whole outstanding amount and not only the 10% not guaranteed by Kafalat.
In the case the borrower fails to repay, the file is transferred to Kafalat that proceeds with the follow up of the outstanding amount. In any case, the borrower remains liable for the entire outstanding amount.