These loans are provided for productive projects in the touristic, agriculture, industry, traditional crafts and high technology fields in which Kafalat's guarantee represent 75%.
- financing projects in the touristic, agriculture, industry, manufactures 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's amount.
- maximum amount: LBP 300 million,
- maximum repayment period: 7 years,
- grace period: 6 to 12 months,
- interest rate incurred: 40% of 1 year Treasury bills + 3% (5.13%),
- subsidized rate: up to 4.5% (by the Central Bank),
- Kafalat commission: 2.5% of the value of the Kafalat guarantee + 3‰ fiscal stamps (a fee that is charged once),
- down Payment: 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 or companies,
- refinancing not allowed,
- real estate financing excluded,
- 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.