BBAC provides you a loan guaranteed by Kafalat to pursue new projects or enhance exiting small and medium businesses in the industry, agriculture, tourism, craftsmen and high technology sectors.

The loan amount ranges between 7.5 and 300 million LBP, and extends over a period of 7 years, altogether with a grace period ranging between 6 months to one year. The Interest rate changes yearly as correlated to the 1 year Treasury Bond.

The client is charged a commission that amounts to 2 ‰ on a quarterly basis and a file fee paid at once of 100,000 LBP if the loan is less than 30 million LBP or 250,000 LBP if the loan is greater than 30 million LP.

Any person or company of a Lebanese Nationality that hires a maximum of 40 employees is eligible for this loan.

A life insurance policy that amounts to 105 % of the loan value and that covers death and Permanent Total Disability must be presented. In addition it must cover fire and civil responsibilities in favor of BBAC.

Kafalat Guarantees

The Kafalat Company guarantees 75 % of the loan’s original amount with the corresponding 75 % of compounded interest. A grace period of an extra 3 months is set and Kafalat charges 2.5% per annum. The guarantee is available throughout the loan period and decreases directly in proportion with the payment of the loan.

If three installments were due and unpaid, Kafalat is liable towards the bank to execute its guarantee, after notifying Kafalat on the second default by a maximum period of 15 days.

For further information please contact us