Kafalat is a Lebanese Financial Company with a public concern for the financing of new projects or for improving productivity of small and medium businesses in the following sectors:

• Industry

• Agriculture

• Tourism

• Handcrafts

• Specialized skills

Kafalat’s loans benefit from interest rate subsidies administered by the Central Bank of Lebanon.

1-Requirements & Conditions:

• Every person or company with a maximum of 40 employees

• The loan must be used for purchase of machinery equipment,
working capital, construction costs

• The loan cannot be used to settle past debts

• All official documents including audited financial statements, in addition to a feasibility study that shows the financial projection for the period of the loan.

• A list of fixed assets and owned properties.

• Proforma invoices for equipments & materials to
be purchased with the fund borrowed

• List of banks the borrower deals with

• Life and fire insurance are required for the period of the loan

• The business should meet the bank’s lending criteria

2-Advantages & Benefits:

• The loan can be repaid over up 7 years (84 months)

• Loan guarantees include a grace period of 6 to 12 months

• Repayment will be by equal monthly installments including principle and interest

• The Central Bank subsidizes a maximum of 7% or the interest charged can reach 0% after BDL’s subsidies

3-Final cost of the loan:

• Cost of kafalat commission (2.5% of the guarantee)

• Fiscal stamps fee

• Opening file fee may be charged by Bank

• Interest charged to borrower