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Long Term Industrial Loans

Financing Features

Preparation of feasibility studies.

Fixed interest rate of 3.5% per annum throughout loan life on the outstanding balance, regardless of any changes in market interest rates.

Long-term loan up to 10 years or more including :

                    1 : Project execution period.
                    2 : Grace period up to 2 years after commencement of production.
                    3 : Repayment period not less than 5 years after the grace period.

Flexible installments matching customer needs (monthly, quarterly or semi annually).

Credit facilities for project execution.

Monitoring of project development by IBK during the loan period.

Prepayment of the loan or cancellation of undisbursed amount without penalty.

Rescheduling of loans where warranted.

 

Eligible Projects

New Industrial projects.

Expansion / modernization of existing projects.

Industrial services in the oil and marine service sector.

Financial restructuring of industrial projects and services.

 

Financing Percentages

New projects : Maximum loan of 50% of the total project cost for the projects costing less than 1 Million K.D.

New projects : Maximum loan of 65% of the total project cost for the projects costing more than 1 Million K.D.

Expansion projects : Loan up to 100% of the total project cost.

 

Based on the feasibility study prepared by the Bank.

 

What else should the client know

Pre-requisites for the acceptance of the loan application are to have the industrial license or allocation of industrial plot of land issued by the Public Authority for Industry (PAI).

Minimum loan amount of KD 50,000/-

First Mortgage of the industrial project in favour of the Bank.

 

Documents necessary for submitting Loan Application

Official letter enclosing the loan application, addressed to IBK’s Chairman & Managing Director.

Copy of the Industrial license or the acceptance letter for the project execution issued by Public Authority for Industry ( PAI ).

License to import machinery for project expansion (Public Authority for Industry).

Feasibility study of the project if available, or recent financial, technical and marketing details of the project.

Quotation for machinery and equipment; purchase orders, supply contracts or invoices in case of items already purchased.

Civil construction contracts or quotations.

Audited accounts in case of existing entities for the last 5 years.

Copy of the lease contract or the temporary administrative allocation for the land.

By – laws and articles of association of the company, including any amendments thereof.

Certificate of registration in the Commercial Register.

Copy of applicant’s Civil ID.

A recent certificate from the ministry of commerce and industry stating the client data.

 

Documents required for concluding Loan Contract

Board Resolution or similar authorizing document of the company approving industrial borrowing and grant of mortgage over its assets.

Certificate from the Ministry of Commerce and Industry stating the details of authorized signatories, for shareholding companies.

Original of the lease deed for the industrial land.

Land description report issued by the public authority for industry.

 

Documents should be recent and valid at the time of evaluation of the industrial loan request by the Bank.

Click here to download Industrial Loan Application Form