Projects where the main purpose is to transform raw materials to fully manufactured products or to intermediate products, or to transform intermediate products to fully manufactured products.
Our Services
Small Enterprises Finance
We finance enterprises that may be of the nature of small industry, handicrafts or commercial services. The Al Senai portfolio for Small Enterprises was established at the Bank through Law No. 10/1998 for financing small enterprises according to Islamic Shariah in order to encourage individual Kuwaiti entrepreneurs.
What is the nature and type of a small enterprise?
A small enterprise project is one in which the total funds invested does not exceed K.D 500,000, and is categorized as follows:
Small industrial enterprises
Crafts related enterprises
Projects that depend mainly on manual skills or artistic abilities using simple tools and machinery.
Commercial enterprises
All types of commercial projects assessed and approved by the bank.
How will we finance your enterprise?
Finance is granted according to the Islamic Shariah where we directly purchase all your requirements as explained below within the terms and conditions of the finance.
Eligibility for a small enterprise loan:
In order to obtain small enterprise financing, the following conditions apply.
- You must be a Kuwaiti national, or a company established under Kuwaiti Companies Law.
- You must hold a license for practicing the activity.
- You should be an artisan fully dedicated to the project without being employed elsewhere.
- Your assets must be insured by a local insurer according to Islamic Sharia
- Your project investment should not exceed K.D 500,000.
- The maximum finance provided for a new project is 80% of the project cost and the owner bears the balance 20%.
- The minimum amount for medium and long-term financing should not be less than K.D 5,000.
- The maximum amount of the short-term finance is K.D 25,000.
- We offer KD 25,000 as a profit-free loan to the applicant paid as a monthly salary for the first two years.
- For expansion projects, finance is available up to KD 400,000.
- The value of your fixed and movable assets is considered as collateral. Other aspects of collateral requirements may be discussed with the Bank.
Documents that you need to submit
- Application form duly completed.
- Certificate from the Public Institute of Social Security stating that you are not employed elsewhere.
- A copy of all educational certifications and statement of relevant experience.
- A declaration of complete dedication to the project.
- Required licenses and certifications issued by the competent authorities.
- Copy of the lease or ownership contract of the project’s location.
- In case of company applicant: Memorandum of Association, financial statement for the last 3 years and a certificate of the company's authorized signatory.
- Quotations of fixed assets and raw materials required for the project.
How can you use this finance?
Short-term financing
This may be used to purchase raw materials, packaging and spare parts for the business. You can settle this finance through repayment in quarterly installments within one year. If you are a new graduate entrepreneur, the settlement period is extended to two years from commencement of production.
Medium and long-term financing
This is granted to small projects that requires machines, equipment and tools and finance for repair, restoration, rebuilding and purchase of other fixed assets or to develop and expand existing enterprises. The installments are settled through monthly, quarterly or semi-annual repayments. A grace period between one and three years is allowed.
