Purpose of the loan

Kafalat Basic guaranteed loans may be used to finance the following:

  1. Purchase of machinery and equipment (new or used).
  2. Purchase of raw material and spare parts
  3. Construction costs. However, the loan should be used exclusively to cover construction costs connected with the workplace of the business.
  4. Working capital
  5. Up to 15% as cost of professional services related to the company's operations, such as: human capital development and management, business consulting, and advisory services related to performance.

Expenses have to be relevant to the business activity subject of the loan, and expenditures have to occur after approval of the loan guarantee. Project costs incurred prior to the loan guarantee application will not be taken into consideration unless a valid written justification is given by the bank and approved by Kafalat.