Kafalat provides loan guarantees for businesses operating in Lebanon.

Applicant has to approach first BKAW to present the project financed by the loan with a justified business plan/ feasibility study.

 

Eligible Kafalat loans applicants profile:

 

The borrower can be an individual, a personal company, a simple partnership, a limited liability company, a joint stock co. or a cooperative.

The economic sectors covered are: Industry, Agriculture, Tourism, Tradition crafts or High technology.

The loan can be for an existing business or a start-up.

 

Repayment period:

A maximum repayment period of 7 years.

A grace period of 6 to 12 months depending on the expected business revenue.

 

Cost of the loan:

  • Interest charged to the borrower:

BKAW Kafalat guaranteed loans are currently subsidized by the central bank by 7%.

                        LBP: 40% of interest rate on 1 year Lebanese treasury bills + 3%

                        US$: Libor 1 year +5.5%

  • Cost of Kafalat commission (2.5% of the guarantee value paid yearly)

  • 0.3% fiscal stamp fee paid once

  • One time bank file fees 400,000 LBP

  • Bank commission of 0.2% of the outstanding balance calculated every three months.

What are the types of guarantees offered by Kafalat:

 

  • Kafalat basic.            

 

Maximum loan amount for a Kafalat basic guarantee is 300 million LBP or its equivalent in foreign currencies.

Kafalat Basic currently guarantees 75% of the loan value granted by BKAW.

 

Kafalat (LBP 75 million ceiling)

Is a special program of Kafalat basic launched on March 2010 and valid until 1/3/2011. 

Maximum loan amount for a Kafalat ((LBP 75 million ceiling) guarantee is 75 million LBP or its equivalent in foreign currencies.

Kafalat Basic currently guarantees 70% of the loan value granted by BKAW.

Fast approval given within 1 week period.

More details are available at any of our branches

 

·         Kafalat plus.

 

Maximum loan amount for a Kafalat plus guarantee is 600 million LBP or its equivalent in foreign currencies.Kafalat plus currently guarantees 85% of the loan value granted by BKAW.More details are available at any of our branches

 

·         Kafalat Innovative

 

Maximum loan amount for a Kafalat Innovative guarantee is 300 million LBP or its equivalent in foreign currencies.

Kafalat plus currently guarantees 90% of the loan value granted by BKAW.

More details are available at any of our branches