- Kafalah Program is a program launched by the Saudi Industrial Development Fund (SIDF) and Saudi banks, the program aims to promote financing to Small and Medium Enterprises (SMEs) within the Kingdom of Saudi Arabia.
- SME customer applies to the bank with the required documents.
- The bank evaluates the applicant’s request, according to the bank’s policies.
- If the request approved, the bank applies to SIDF a Kafalah guarantee, along with the written approval from the business owner accepting the Kafalah program.
- If the request approved by Kafalah, Kafalah program will issue Kafalah guarantee to the bank.
- SME customer may be asked by SIDF to provide the necessary guarantees.
- Finally, the credit-line agreement will be signed by the bank and customer to obtain the finance.
- Copy of ID/Iqama
- Copy of activity’s license
- Copy of commercial register
- Copy of the enterprise’s foundation contract (if the enterprise is a company)
- Copy of the location’s rent or ownership contract enabling the practice of the activity
- Financial results for three years (for existing projects)
- Finance demand application
- Copy of ownership documents (real estate, cars, etc.)
- Any further documents the Bank requires
For more information please visit the program's website: www.Kafalah.gov.sa
|Product||Annual Percentage Rate*||Administration Fees|
|Short Term Loans||5% - 7% plus SIBOR||1.5% - 3%|
|Mid Term Loans||6% - 8% plus SIBOR||1.5% - 3%|
*Above rates may change based on the credit record of the entity.