For Individuals:
For Companies:
The lending bank is not allowed to ask for any collateral from the borrower on top of the Kafalat guarantee.
The lending bank may ask for collateral from the borrower, on top of the Kafalat guarantee.
Eligible applicants are SMEs with less than 40 registered employees operating in the Agricultural Sector.
All types of legal economic entities are eligible for Kafalat Agriculture Loans. The borrower may be an individual, a sole proprietorship, a simple partnership, a limited liability company, a joint stock company, a cooperative or an NGO.
The business activity has to take place in Lebanon and be registered as an entity in Lebanon.
Kafalat Agriculture guaranteed loans may be used to finance many agricultural activities according to the programme:
Kafalat Small Agriculture guarantees loans with amounts varying between a minimum of LBP four million and a maximum of LBP 65 million.
This programme finances all types of farming and agricultural activities, including fixed assets and working capital needs.
Kafalat Agriculture is implemented in the framework of the ARDP (Agricultural and Rural Development Programme) funded by the European Union and executed by the Lebanese Ministry of Agriculture, which aims at financing activities related to the agriculture business in all its aspects.
This programme is co-financed by the EU and Kafalat SAL, and responds to special needs raised by activities of small-scale agriculture and tree plantation.
A Kafalat Innovative loan application may be presented in different ways:
Kafalat Innovative guaranteed loans may only be granted in Lebanese Pounds. The loan will be charged the following interest rate:
Interest rate = 1 year Lebanese Treasury Bills Yield (TBY’s) + 3%
The interest subsidy is the same for all subsidized loans, currently at 4.5%. The duration of the subsidy will cover the whole duration of a Kafalat Innovative loan guarantee.
