Characteristics of the Loan

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

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.

Kafalat Plus guarantees 85% of the value of the loan granted by the bank plus 85% of the accrued interest during the grace period + 3 months. Thus, the Kafalat Plus scheme covers the repayment of 85% of the outstanding amount to the bank in case of default. However, the borrower is liable for the total outstanding amount and not only the 15% unguaranteed.