Burgan Bank Extends Banking Facilities to Support individuals, Small and Medium-Sized Enterprises (SMEs) and the Economic Entities Negatively-Affected by COVID-19 due to the exceptional work conditions that have been taken precautionary. These facilities are in accordance with the regulatory framework developed by the Central Bank of Kuwait ("CBK") and the National Fund for Small and Medium Enterprise Development based on the instructions of the Council of Ministers.

To apply for Finance, corporate banking customers and the owners of Small and Medium Enterprises are kindly requested to download and fill in the forms attached herewith.

Conditions to be met for Small & Medium Enterprises (SMEs) (including but not limited to):

  • All Partners must be Kuwaiti.
  • The Partners should be over 21 years old.
  • The employer should not be actively employed under a different entity.
  • The number of workers shall not exceed 150.
  • The assets shall not exceed KD 500,000.
  • The Revenues shall not exceed KD 1,500,000.

Note: it is worth-noting that, in relation to the Finance for Small and Medium enterprises ("SMEs"), it will be granted after the completion of the relevant arrangements with the National Fund for Small and Medium Enterprise Development.

Terms and Conditions stipulated in the Economic Package (including but not limited to):

  • To be an added value to the national economy and have capabilities to create job opportunities for the national workforce.
  • The activity shall maintain the existing national workforce, and achieve the National Employment Ratio by the end of 2021.
  • The operating account must be at the financing bank.
  • The activity shall generate operating profits during the previous period.
  • To be one of the sectors that were partially or totally affected by the precautionary measures taken to prevent the wide-spread of Corona Virus epidemic in the country.
  • The activity shall not be non-performing whether in the banking sector or in the National Fund.
  • No dividend to be distributed during the term of the loan.
  • The company shall not be default and non-performing as of 31/12/2019 until the date of submitting the application.

The below tables summarize the cost of finance in accordance with the category of the negatively-affected client:

Small and Medium-sized Enterprises (SMEs)

Banks’ and Fund’s Clients

Fund

(80% of finance sum)

Banks

(20% of finance sum)

Weighted average of finance cost

First Year

(Grace Period)

No interest/profit

2.5% fully charged by the State’s General Budget

0.5% fully charged by the State’s General Budget

Second Year

No interest/profit

2.5% fully charged by the State’s General Budget

0.5% fully charged by the State’s General Budget

Third Year

No interest/profit

2.5% equally charged by the State’s General Budget and the client

0.5% equally charged by the State’s General Budget and the client 


Finance Extended by Banks to Individuals, Companies, and Other Clients

First Year (Grace Period)

2.5% fully charged by the State’s General Budget

Second Year

2.5% equally charged by the State’s General Budget and the client

Third Year

2.5% fully charged by the client



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