In association with The Central Bank of Lebanon & Kafalat s.a.l, LGB BANK gives the opportunity to small and medium businesses to finance development projects, in different economic sectors:
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Industry
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Agriculture
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Tourism
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High technology
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Traditional crafts
Kafalat offers distinct types of loans based on the business activity, feasibility studies and cash flows showing the viability of the proposed business and its capacity to repay the loan.
You can apply for any Kafalat loan by visiting any LGB BANK branch , where our customer service representatives are ready for assistance.
Proposed to productive projects in tourism, agriculture, industry, traditional crafts and high technology.
Loan’s Characteristics
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Maximum amount: LBP 300 million
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Maximum repayment period: 7 years
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Grace period: 6 to 12 months (inclusive loan period)
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Kafalat plus guarantee: 75% of the loan value granted by the Bank
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Applicable rate:40% of 1 year Treasury bills and 3.3% (subsidized by the Central Bank adding up to 4.5%)
General Conditions
The loan to be used for business development:
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To establish a viable new production capacity
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For new horizontal or vertical expansion
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For business unit or product line expansion
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To purchase machinery, equipment, raw materials and spare parts
Eligibility
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The business venture can be an existing one or a start-up
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The enterprise should have 40 employees or less
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Kafalat Loans are given to all types of legal entities. The borrower can be an individual, an establishment, a simple partnership, a limited liability company, a joint stock company, or a cooperative.
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Refinancing not allowed
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Real estate finance is excluded
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Business activity has to take place in Lebanon
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Loan does not cover value added taxes
Proposed to productive projects in tourism, agriculture, industry, traditional crafts and high technology
Loan’s Characteristics
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Maximum amount: LBP 600 million
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Maximum repayment period: 7 years
-
Grace period: 6 to 12 months (inclusive loan period)
-
Kafalat plus guarantee: 85% of the loan value granted by the Bank
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Applicable rate:40% of 1 year Treasury bills and 3.3% (subsidized by the Central Bank adding up to 4.5%)
General Conditions
The loan to be used for business development:
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To establish a viable new production capacity
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To purchase machinery, equipment, raw materials and spare parts
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For renovation and/or general installation costs
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Other strategic objectives that serve the interest of SME’s and start-ups
Eligibility
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Beneficiaries: incorporated SME’s (SAL, SARL) or cooperatives
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The enterprise should have 40 employees or less
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Refinancing not allowed
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Real estate finance is excluded
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Business activity has to take place in Lebanon
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Loan does not cover value added taxes
This type of loan was set up to specifically support start-ups which demonstrate the potential to create significant commercial added value through innovation. Accordingly, innovation is defined as at least one of the following activity:
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Development of a new product or service to the local market
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Development of a new production or business process
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Development of new uses for existing products
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Development of new types or modes of distribution or sales channels
Loan’s Characteristics
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Maximum amount: LBP 300 million
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Kafalat plus guarantee: 90% of the loan value granted by the Bank
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Maximum repayment period: 5 years
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Grace period: 6 to 12 months (inclusive loan period)
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Applicable rate:40% of 1 year Treasury bills and 3.3% (subsidized by the Central Bank adding up to 4.5%)
General Conditions
The loan to be used for business development:
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Exceptionally to purchase raw materials and spare parts
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To purchase equipment and capital goods (whether new or used)
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Other strategic objectives that serve the interest of SME’s and start-ups
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Research and development
Eligibility
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Beneficiaries: SME’s (SAL, SARL), cooperatives or natural persons
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The enterprise should have 40 employees or less
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Refinancing not allowed
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Real estate finance is excluded
-
Business activity has to take place in Lebanon
-
Loan does not cover value added taxes
This type of loan was set up for the financing of new projects and providing the support for start-ups business which demonstrate the potential to create significant commercial added value through innovation.
Loan’s Characteristics
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Maximum amount: LBP 75 million
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Kafalat plus guarantee: 70% of the loan value granted by the Bank
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Maximum repayment period: 7 years
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Grace period of 6 to 12 months (inclusive of the loan period)
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Applicable rate:40% of 1 year Treasury bills and 3.3% (subsidized by the Central Bank adding up to 4.5%)
General Conditions
The loan to be used for business development:
-
To purchase equipment and capital goods (whether new or used)
-
Other strategic objectives that serve the interest of SME’s and start-ups
-
For Product line expansion
Eligibility
-
Beneficiaries: SME’s (SAL, SARL), cooperatives or natural persons
-
The enterprise should have 40 employees or less
-
Refinancing not allowed
-
Real estate finance is excluded
-
Business activity has to take place in Lebanon
-
Loan does not cover value added taxes