Special Conditions

  • The borrower must commit to making a minimum contribution of 20% in equity, either in kind (subject to KAFALAT’s approval) or in cash towards the cost of the project.
  • For start-up SMEs or expansion projects, the final debt/equity ratio should be at most 70/30, or equity should be not less than 30% of total outstanding liabilities.
  • Loans may only be approved for renovation or extension of premises, machinery and equipment, working capital and up to 15% of cost of professional fees and services related to the project.
  • The lending bank is not allowed to require from the borrower any collateral or other guarantees on top of the Kafalat loan guarantee.