Kafalat Basic

In partnership with Kafalat, LSB is offering Kafalat Basic to finance the fixed asset and working capital needs of SMEs. The participation of Kafalat helps the client to secure a loan through the provision of a guarantee.

  • Key Features
    • Loan Currency: USD /LBP
    • Maximum loan amount: LBP 300,000,000 or countervalue in USD or EUR
    • Interest rate in LBP: Yield of Lebanese Treasury bills+3%
    • Interest rate in foreign currency: Libor (1 year)+5.5%
    • Interest rates subsidized by the Central Bank: up to 4.5% over a maximum period of 7 years
    • Repayment period of 7 years within a grace period varying from 6 months to 1 year.
    • Kafalat guarantees 75% of the loan, making it easier for you to secure financing if you would ordinarily have insufficient mortgages
    • Maximum tender: 7 years, with 6 to 12 months grace period
    • No file fees
  • Conditions
    • The loan may cover the purchase of machinery, equipment, raw materials, spare parts and the financing of working capital. Furthermore, 15% may be used to finance professional services.
    • SMEs with less than 40 registered employees operating in industry, tourism, agriculture, high technologies or crafts are eligible
    • No specific requirement for legal entity type, but must be registered in Lebanon
    • Life insurance in favour of LSB
    • Fire insurance in favour of LSB
  • Required Documents

    • Cash-flow prediction and feasibility study
    • Documents proving personal and/or company status