Guarantees for Loans to Small and Medium Enterprises
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News & Events

Kafalat SAL Celebrates the Arab Day for Financial Inclusion

On April 27 of each year, the Arab World celebrates Financial Inclusion. Financial Inclusion is the effort of making available all financial services to various segments of society, especially the... more

Kafalat at Beirut Energy Forum 2015 - From 9 To 11 September

Kafalat SAL will be participating in the International Beirut Energy Forum - 2015, at booth # 21. The Bieurt Energy Forum is an annual meeting event for experts and stakeholders in Renewable Energy... more

Kafalat launches three new programmes

February 28, 2013 - In an event at the Association des Banques au Liban, gathering representatives from all Lebanese banks, and with the participation from Representative of the Delegation of the... more

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Partners in Co-operation

Industrial Research InstituteMultilateral Investment Guarantee Agency
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Characteristics of the Loan

Mon, 05/06/2013 - 16:41 -- admin

Characteristics of the Loan

Kafalat Start-ups and Innovation guarantees loans with amounts varying between a minimum of LBP four millions and a maximum of 650 millions, and is only granted to Joint Stock Companies (S.A.L.)

The loan has to be repaid within a maximum of 7 years. New loan guarantees include a grace period between 6 and 12 months depending upon the expected business revenue. During the grace period, the borrower makes no repayment, neither in principal nor in interest.

English

Overview

Mon, 05/06/2013 - 16:39 -- admin

Kafalat Start-ups and Innovation Programme Overview

Kafalat Start-ups and Innovation is the result of a partnership with the European Union and the Presidency of Council of Ministers to primarily serve the needs of innovative enterprises and start-ups in Lebanon. The fund will enable guaranteeing loans granted to highly innovative investments and conventional start-ups in 5 different sectors:

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Application Flow

Mon, 05/06/2013 - 16:33 -- admin

Application Flow

The borrower has first to approach a bank to present the project to be financed by the loan.

Once the bank has accepted the loan application, it submits this application to Kafalat. In addition to bank loan documents, Kafalat requires a completed loan guarantee application form as well as its own set of supporting documents.

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Cost of the Loan

Mon, 05/06/2013 - 16:30 -- admin

Cost of the Loan

Interest Rates

Kafalat Plus guaranteed loans may be granted in either Lebanese Pounds or US Dollars, or any other convertible foreign currency.

Loans taken in Lebanese Pounds (LBP) will be charged the following interest rate:

Interest rate = 40% of the 1 year Lebanese Treasury Bills Yield (TBY’s) + 3%

Loans taken in Foreign Currency (e.g. USD) will be charged the following interest rate:

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Documents Required

Mon, 05/06/2013 - 16:24 -- admin

Documents Required

Required documents related to the borrower:

  1. Identity Card of the partners and the Commercial Register of the company.
  2. Bylaws of the company indicating the borrowing rights on behalf of the company.
  3. Recent Central Des Risques report (CDR) from BDL for the company and its partners (report should not be older than three months).
  4. Telephone no.
English

Special Conditions

Mon, 05/06/2013 - 16:21 -- admin

Special Conditions

  • The borrower must commit to making a minimum contribution of 20% in equity, either in kind (subject to KAFALAT’s approval) or in cash towards the cost of the project.
  • For start-up SMEs or expansion projects, the final debt/equity ratio should be at most 70/30, or equity should be not less than 30% of total outstanding liabilities.
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Eligibility

Mon, 05/06/2013 - 16:18 -- admin

Eligibility

Eligible applicants are SMEs with less than 40 registered employees operating in one of the five subsidized sectors: Industry, Tourism, Agriculture, High Technologies and Crafts.

Legal Forms

Kafalat Plus loan guarantees are given to incorporated SMEs such as Joint Stock Company (SAL), or Limited Liability Company (SARL), and Cooperatives, registered in Lebanon as a profit making enterprise. The business activity has to take place in Lebanon.

English

Purpose of the loan

Mon, 05/06/2013 - 16:16 -- admin

Purpose of the loan

Kafalat Plus guarantee programme was specifically set up to support projects demonstrating a potential to create significant added value, placing emphasis on the project’s feasibility and viability.

Kafalat Plus guaranteed loans may be used to finance all business related expenditures, including:

English

Characteristics of the Loan

Mon, 05/06/2013 - 16:13 -- admin

Characteristics of the Loan

Kafalat Plus guarantees loans with amounts varying between a minimum of LBP four millions and a maximum of LBP 600 millions.

The loan has to be repaid within a maximum of 7 years. New loan guarantees include a grace period between 6 and 12 months depending upon expected business revenue. During the grace period, the borrower makes no repayment, neither in principal nor in interest.

English

Overview

Mon, 05/06/2013 - 16:09 -- admin

Kafalat Plus Programme Overview

Kafalat Plus Programme is the result of a partnership between the European Union and the Ministry of Economy and Trade of Lebanon (MoET) to help finance new production capacity or sustain current production and employment. This programme offers loan guarantees to existing SMEs and conventional start-ups.

It helps SMEs in their business ideas or activities through facilitating access to finance in 5 different sectors:

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kafalat statistics

At 31-12-2016
2 801
active loans in Agriculture
996
active loans in Tourism
2 452
active loans in Industry