If you've always dreamed of launching your own company or taking an existing business to the next level, a Kafalat Basic Loan can provide the missing ingredient: affordable financing. Qualified entrepreneurs can secure up to LBP 300 million toward initiation of a new project, acquisition of equipment, renovation of a workplace, and/or working capital.
Features
- Term loan repaid over seven years (including grace period of six-12 months) via equal monthly installments
- Kafalat Guarantee: 75% of principal
- Interest rate: for LBP 40% of one-year Lebanese Government Treasury Bills plus 3%, minus subsidy provided by Central Bank (subsidy is currently 4.5%); for USD one-year LIBOR plus 5.5%, minus subsidy provided by Central Bank (subsidy is currently 4.5%)
Sectors
- Small- and medium-sized industries, technology, tourism and agriculture enterprises, craftsmen, technicians. Maximum number of employees registered with the National Social Security Fund (NSSF) before obtaining the loan should not exceed 40
Eligibility
- Open to both individuals and companies (existing or start-up)
- Be at least 18 years of age
- Possess relevant technical skills and have a minimum of two years of work experience in the field
- Applicant must present a business plan, complete with cash-flow prediction and feasibility study, that demonstrates the viability of the activity to be financed
Special conditions
- No minimum contribution required from borrower
- Collateral determined on a case-by-case basis
Required Guarantees
- Clean basis, OR
- Mortgage agreement, OR
- Commitment of non-disposal (negative pledge), OR
- Personal guarantee
- Fire insurance policy covering stock, machinery and premises if judged necessary
- Life insurance if continuity is not secured
Fees
- Yearly commission of 2.5 % of Kafalat Guarantee
- One-time Central Bank filing fee of LBP 100,000