Financing backed by the Social Development Bank's guarantee
The Kafalah program (Social Development Bank) guarantees up to 80% of your commercial loan to the lender. This significantly reduces lender risk, boosting your approval odds — especially if your business is new or lacks sufficient collateral. Maximum guaranteed amount: SAR 10M.
10,000,000 (المكفول)
SAR max
Follows original lender terms (1-10 years)
Tenor
15 to 30 days (Kafalah review)
Speed
Kafalah fee 1-3% annually of guaranteed amount + lender APR
Cost
Apply for financing to a bank or finance company on the Kafalah network
If eligible, apply for a Kafalah guarantee (through the lender)
Kafalah evaluates your project and business (revenue, sector, plan)
Upon approval, Kafalah guarantees 80% of the amount to the lender; you get financing on better terms (lower APR)
Repay the lender normally; the guarantee only activates if you default
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Maximum amount
10,000,000 (المكفول) SAR
Tenor
Follows original lender terms (1-10 years)
Cost structure
Kafalah fee 1-3% annually of guaranteed amount + lender APR
Funding speed
15 to 30 days (Kafalah review)
No. Kafalah doesn't lend directly — it guarantees loans from lenders (banks, finance companies). You get the financing from the approved entity; Kafalah reduces their risk via the guarantee.
Kafalah guarantees commercial loans from private lenders; it doesn't lend itself. SIDF lends directly from its own budget to factories at concessional rates. You can combine them: SIDF for major assets, Kafalah for additional commercial financing.
Kafalah fees (1-3% annually on guaranteed amount) add to lender APR, but savings on lender APR (due to reduced risk) usually offset and exceed the fee. Kafalah also unlocks financing that wouldn't be available without collateral. Net: positive for SMEs lacking collateral.
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