Kafalah Program

Kafalah Program

Kafalah Program

About Kafalah

The Small and Medium Enterprises Loan Guarantee Program (Kafalah) provides the necessary guarantees for financiers to assist MSMEs and entrepreneurs in obtaining financing necessary for development of their activities, and aims to encourage financiers to deal with SMEs sector in addition to attracting a new segment of MSME owners that have not previously dealt with financiers.

Kafalah Program seeks to achieve the goals and themes of Saudi Vision 2030 in all of its initiatives and products being developed with cooperating financiers and relevant entities, so that the Program will have an effective positive impact on the development and sustainability of SMEs sector in the interest of the Kingdom's economy, the financing segment for every tier will be as below:

  1. Microenterprises (number of employees (1 to 5), sales/ revenues of the enterprise (no more than SAR 3 million)
  2. Small enterprises (number of employees (6 to 49), sales / revenues of the enterprise (SAR 3 million to SAR 40 million)
  3. Medium enterprises (number of employees (50 to 249), sales / revenues of the enterprise (SAR 40 million to SAR 200 million)

Financing Process

  1. SME customer applies to the bank with the required documents.
  2. The bank evaluates the applicant’s request, according to the bank’s policies.
  3. 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.
  4. If the request approved by Kafalah, Kafalah program will issue Kafalah guarantee to the bank, and SME customer may be asked by SIDF to provide the necessary guarantees.
  5. After the credit line agreement and the personal guarantees of the issued Kafalah is signed by the bank and customer the process to obtain the finance will start.

Required documents:

  1. A copy of valid commercial register.
  2. A copy of the national ID or Iqama of the individual activity owner or a copy of articles of association of the partner group.
  3. Balance sheets or financial statements of activity.
  4. GOSI valid certificate.
  5. ZATCA valid certificate.
  6. Saudization valid certificate.
  7. A valid copy of license.
  8. National address.
  9. VAT registration certificate.

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.

Product Annual Percentage Rate* Administration Fees
Short Term Loans 5% - 7% plus SIBOR 1.5% - 3%
Mid/long Term Loans 6% - 8% plus SIBOR 1.5% - 3%

*Above rates may change based on the credit record of the entity.