Kafalat Loan


Do you have the ideas and skills and need commercial bank funding at low cost
to start a new project or to develop your current business. “Kafalat loan” from Bank
of Beirut s.a.l. will answer your needs.

Purpose of the Loan

  • Purchase of machinery and equipment and capital goods
  • Plant renovation or expansion, etc.
  • Purchase of raw materials, working capital, etc.

Who is Eligible?

  • Small and medium sized companies or individual entities (having 40 employees or less), addressing the
    industry, tourism, agriculture, computer technology or traditional crafts sectors.
Terms of the Loan
  • Loan amount: A minimum amount of LBP 4,000,000 up to a maximum LBP 300,000,000.
  • Repayment period: Maximum 7 years (depending on the life and purpose of the project), including a
    grace period between 6 months and 12 months.
Pricing
  • Interest rate:
             In LBP: (Yield T/B’s for 1 year x 40% + 3%) + 2‰ quarterly commission.
                      If Yield T/B’s is 7.75% => Int. rate is 6.10% + 2‰ commission.
             In USD: (Libor 1 year + 5.5%) + 2‰ quarterly commission.
  • Cost of the Kafalat loan commission: 2.5% of the amount of the guarantee issued by Kafalat s.a.l
  • Central Bank of Lebanon fees: LBP 100,000.
          Kafalat loan could benefit from interest rate subsidy from the Central Bank of Lebanon up to a
          maximum of 7%.

Required Documents

  • Feasibility study with cash flow projection for the duration of the loan.
  • Pro forma invoices for equipments or goods to be purchased with the funds borrowed.
  • Permit or initial approval from official authorities that authorize applicant to execute his business activity.
  • All the other required documents for a credit file, mainly audited balance sheets and income statements
    for the last 3 years, statements of account from other banks for at least 12 months, supporting documents
    for the balance sheet and income statement and list of net worth.

Main required guarantees (reviewed on case by case basis mainly):

  • First degree mortgage
  • Personal guarantee
  • Life and fire insurances

The Bank reserves the right to request additional documentation.