Kafalah Program to support Small and Medium Enterprises (SMEs)

Kafalah Program aims at providing the (Financial Institutions) with the required guarantees to help Small and Medium Enterprises (SMEs) and entrepreneurs to obtain the required facilities to support and develop their business, and that, by encouraging the financial institutions to deal with this sector, in addition to attracting a new segment of the owners of Small and Medium Enterprises (SMEs) that has never dealt with (Financial Institutions).

The program seeks to achieve VISION 2030’s objectives and themes in all its initiatives and products that are developed in collaboration with (Financial Institutions) and concerned parties, for the program to have an effective & positive impact in developing and ensuring the continuity of the Small and Medium Enterprises (SMEs) sector thus serving the national economy interest.

Activities not guaranteed under the program:

  • Activities that are not included within the definition of the Small and Medium Enterprises (SMEs) (i.e. activities with annual revenues that exceed 200 million Saudi Riyals).
  • Activities that are contrary to Saudi Arabia’s Vision 2030 and the State’s highest policies.
  • Financial or real estate speculation acts, in addition to funding schemes.
  • Activities that are contrary to regulations and laws in the Kingdom of Saudi Arabia.

  • Personal and real estate loans.

The following table represent the types of facilities and prices offered by Samba:

Nature of Facility Max. Loan Tenor Pricing Interest/profit service Principal Repayment
General Working Capital 365 days *SIBOR + 7% p.a At maturity Bullet repayment at maturity
Post Letter of Credit refinance / Project Progress Finance 365 days *SIBOR + 6% p.a At maturity Bullet repayment at maturity
Term Loans 5 years *SIBOR + 8% p.a Monthly /Quarterly Installments monthly / quarterly
Overdraft facility 365 days **Base Rate + 3% p.a Monthly ***On demand
  • * The SIBOR Pricing is 2.09% as per 05-12-2019
  • **Current Base Rate of the bank is 12%.
  • *** Clean-up to be made on quarterly basis by maintaining credit balance for 4 consecutive days in main current account.
  • Management Fee: Flat 3% on the Total Approved Facilities (TFA) to be paid immediately after signing the credit documentation.
  • Note: The above terms and pricing are indicative only which varies with Bank’s internal credit rating and business profile of the customer.

Samba Offices - Credit Services for Small and Medium Enterprises

For more information about credit services for Small and Medium Enterprises (SMEs), kindly visit the nearest branch and communicate with the branch manager or visit us at our following offices:

  • Central region:  Al Sulaimaniyah Riyadh – Abdullah Al-Hamdan Street – phone: 011-4612358
  • Eastern region:  Regional office in Al Khobar – Corniche Street – phone: 013-8658000
  • Western region: Regional office in Jeddah – Al Andalus Street – phone: 012-6533555