These loans are provided for productive projects in the tourism, agriculture, industry, traditional crafts and high technology sectors in which Kafalat guarantee represents 75%.
- financing up to 100% of the project cost (projects in the tourism, agriculture, industry, manufacture and high technologies sectors),
- purchase of machinery and equipment (these can be new or used),
- purchase of raw materials and spare parts,
- construction costs (however, the loan should not be exclusively used to cover construction costs),
- working capital,
- guarantee: Kafalat guarantees up to 75% of the loan amount.
- loan amount: from LBP 4 million to LBP 300 million,
- loan period: up to 7 years,
- grace period: from 6 to 12 months (on capital and interests),
- interest rate: 40% of the 1-year Lebanese Treasury Bills Yield (TBY's) + 3%,
- interest rates subsidized by the Central Bank: up to 4.5% over a maximum period of 7 years,
- Kafalat commission: 2.5% of the value of the Kafalat guarantee + 3‰ fiscal stamps (a fee that is charged once),
- downpayment: to be determined according to the project; maximum financing can reach 100% (in case of development of an existing activity),
- client contribution: set in accordance with the project, funding of the project may reach 100% (in case of developing an existing activity).
- beneficiaries: individuals and all types of economic entities registered in Lebanon,
- refinancing is not allowed,
- real estate is excluded,
- the business activity has to take place in Lebanon.
Kafalat Basic delegation
- for loans less or equal to LBP 75 million provided for productive projects in tourism, agriculture, industry, traditional crafts and high technology fields,
- Kafalat guarantees 70% of the value of the loan rather than 75%,
- requires the approval of Banque Libano-Française Committee after which Kafalat will issue the loan guarantee, a fast and efficient process.