How much of the loan does Kafalat Plus guarantee?
Kafalat Plus currently guarantees 85% of the value of the loan granted by the bank and 85% 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, the Kafalat guarantees the repayment of 85% 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 15% 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.
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