Kafalat Delegation

Whether you are an individual or a company, and have a small to middle size project, Kafalat Delegation is the best choice. It is mainly used for the purchase of machinery and equipment, plant renovation and expansion, purchase of raw materials and spare parts, construction costs, and working capital among others. Kafalat Delegation can cover a project up to LBP 75 million or its equivalent in foreign currency.

Characteristics:
  • Maximum Amount: LBP 75,000,000
  • Economic Sector
    • Industry
    • Agriculture
    • Tourism
    • Crafts
    • High technologies
  • Tenor:
    • Up to 7 years
    • 3 – 4 years if taken for Working Capital Needs only
  • Grace Period: Between 6 months and 1 year
  • Kafalat Guarantee: 70%
  • Collateral: Cannot exceed 50% of the loan value
  • Interest Rate:
    • LBP: 40% 1YR TB + 3.3% - subsidy rate 4.5% => Actual Effective Rate = 0.94%p.a. (Sep. 2016)
    • USD: LIBOR (1YR) + 5.5% - subsidy rate 4.5%  => Actual Effective Rate = 2.55%p.a. (Sep. 2016)
  • Commission: 2.5% Kafalat Commission on the outstanding guaranteed amount to be collected on a yearly basis

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