Kafalat Basic is the first loan guarantee programme that Kafalat started offering in 2000. This programme offers loan guarantees for fixed asset and working capital financing needs of SMEs. It helps start-ups and existing businesses develop their ideas or activities in 5 different sectors:
Kafalat Basic guaranteed loans may be used to finance the following:
The Kafalat guaranteed loan could be used for all business related expenditures that include:
• Purchase of equipment and capital goods. (These can be new or used)
• Plant renovation, expansion, etc.;
• Purchase of raw materials, spare parts, working capital, and consulting fees;
Cost of Kafalat Innovative loan guarantee:
The following activities will not qualify for loan guarantees under the Kafalat guarantee scheme:
• Manufacturing or selling arms, weapon, or munitions;
The Kafalat guaranteed loan could be used for all business related expenditures that include:
• Purchase of equipment and capital goods. (These can be new or used)
• Plant renovation, expansion, etc.;
• Purchase of raw materials, spare parts, working capital, and consulting fees;
Kafalat Innovative loan guarantees are given to incorporated SMEs only (ie: SAL, SARL, Cooperative ... )
The applying SME must fulfill all the following conditions:
• The loan is used in one of the following economic sectors: Industry, Agriculture,
Tourism, Traditional Crafts, or High Technology;
Kafalat Innovative currently guarantees 90% of the value of the loan granted by the bank and 90% 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.
