Kafalah Program

Kafalah Program

Kafalah Program

Kafalah Definition

  • 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.

Financing Process

  • 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.

Required documents

  • 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

Apply for Kafalah now, Contact the Saudi Investment Bank Flexx call 8001248000, or fill the customer information form and visit the nearest branch to you.

Saib Forms

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.