Characteristics of the Loan

Kafalat Innovative guarantees loans with amounts varying between a minimum of LBP four million and a maximum of LBP 300 million, which can only be granted in Lebanese Pounds.

The loan has to be repaid within a maximum of 5 years. New loan guarantees include a grace period between 6 and 12 months depending upon expected business revenues. During the grace period, the borrower makes no repayment, neither in principal nor in interest.

The Client may submit the loan application simultaneously to the commercial bank and to Kafalat SAL.

Kafalat SAL is entitled to issue a letter of intent, for the applicant, to guarantee a loan to be granted by any commercial bank.

Kafalat Innovative guarantees up to 90% of the value of the loan granted by the bank and 90% of the accrued interest during the grace period + 3 months. Thus, the Kafalat Innovative scheme covers the repayment of 90% of the outstanding amount to the bank if case of default. However, the borrower is liable for the whole outstanding amount and not only the 10% unguaranteed.