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Overview

The Small and Medium Enterprises Loan Guarantee Program (Kafalah) provides the necessary guarantees to financiers to support MSMEs and entrepreneurs in obtaining financing required for the development of their activities.

The program aims to encourage financiers to engage with the SME sector, while also attracting a new segment of MSME owners who have not previously dealt with financiers.

Features & Benefits

Flexible Financing Options

Access overdrafts, short-term loans, and letters of credit based on your operational requirements.

Government Guarantee Support

Rely on the Kafalah Program to reduce bank risk and improve funding approval rates.

Competitive Rates

Benefit from financing rates designed to support healthy cash flow management.

Dedicated SME Focus

Empower SMEs and growing businesses with accessible financing.

Simple Application Process

Apply for term loans, working capital facilities, and other structured products tailored to your needs.

No Additional Corporate Guarantees

Secure facility protection backed by Kafalah, reducing the burden of additional collateral.

Registered Business Entity

Must be an established SME registered as a legal entity (sole proprietor, limited liability company, or similar).

Minimum Credit and Risk Acceptance

Must meet the minimum credit and risk acceptance criteria established by The Saudi Investment Bank and the Kafalah Program.

Credit History and Financial Standing

Must maintain positive credit history records for the business and its owners in SIMAH and demonstrate positive financial indicators.

Commercial Registration

Provide a valid commercial registration certificate.

Identity and Legal Documents

Provide a copy of the national ID or Iqama of the individual business owner, or a copy of the articles of association of the partner group.

Financial and Compliance Certificates

Submit balance sheets or financial statements of the business, along with valid GOSI, ZATCA, and Saudization certificates.

Business and Address Records

Provide a valid copy of the business license, national address registration, and VAT registration certificate.

Prepare Required Documents

Gather and ensure all required documents are complete before proceeding with the application.

Bank Evaluation

The bank evaluates the request in accordance with its credit policies and requirements.

Kafalah Guarantee Application

If approved, the bank submits a Kafalah guarantee application to the program, along with written approval from the business owner accepting the guarantee.

Final Decision

Once the program approves the request, a Kafalah guarantee is issued to the bank, and the financing process proceeds after the required agreements are signed.

Get in Touch with Our Team

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Frequently Asked Questions

It provides government-backed guarantees to help SMEs and entrepreneurs secure financing with higher approval rates and lower collateral requirements.

The program supports Micro (up to 5 employees), Small (6–49 employees), and Medium enterprises (50–249 employees) with varying revenue brackets.

No. The facility is backed by Kafalah, reducing the burden on the business to provide extra security or personal collateral.

You can apply for a variety of products, including term loans, working capital facilities, and revolving overdrafts tailored to SME needs.

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