FAQS
A management fee of 2.5% annually applies to the amounts withdrawn from agricultural loans.
The borrower is granted:
- A grace period of up to three years for new projects.
- A two-year grace period for existing projects.
- Fruit and palm tree projects are granted a grace period of up to five years.
As for the repayment term:
- Short-term loans repaid within one year from the date of disbursement.
- Long-term loans repaid within a period not exceeding ten years, depending on the nature of the agricultural project.
Applicants can apply through the bank’s official website.
The Bank operates during official working days from
Sunday - Wednesday:
- 8:30 AM - 3:00 PM
Thursday:
- 8:30 AM - 2:00 PM
Except for the banking hall at 3:00 PM.
The Industrial Bank of Kuwait is a specialized financial institution dedicated to supporting industrial and economic development in Kuwait. The bank provides financing, advisory services, and banking solutions to individuals, small and medium enterprises (SMEs), and industrial sectors.
IBK offers a range of services including industrial financing, SME financing, commercial financing, Agriculture financing, Direct investment, and treasury services.
Industrial loans are subject to fixed annual interest rate of 3.5% applied to the utilized portion of the loan, and 0.5% per annum applied to the unutilized portion.
The primary security for the industrial loan shall be a mortgage over the commercial enterprise, inclusive of all existing & future assets, together with a mortgage over the entire factory that is the subject of the loan, whether the factory is under construction or fully operational.
The Bank may at its discretion, require additional collateral from the customer, which shall remain in effect until the industrial loan has been fully repaid, as deemed appropriate by the bank.
- Applicants must submit all required and duly approved official documentation applicable to industrial companies and establishments.
- For industrial manufacturing projects, the minimum land area allocated to the project shall be not less than 1,000 m², and must be sufficient to accommodate production facilities, operational areas, warehouses and support services, in accordance with the regulations and requirements of relevant / regulatory authorities.
- The minimum eligible industrial loan amount shall be KD 100,000.
- Industrial loans are not granted for the purpose of financing the purchase of industrial land.
- However, financing may be extended for the following purposes:
- New factories and projects under construction.
- All types of expansion projects, including, but not limited to, the introduction of new products, capacity expansion, relocation to a new site, replacement of obsolete assets cost over-run... etc.
- Financial restructuring of industrial companies.
- Acquisition of existing projects, provided that the financing excludes the value of the land.
Yes, the project manager must be fully dedicated to managing the project and cannot hold another government or private sector job (must be registered under Chapter Five or be retired).
The minimum amount of financing is 5,000 KWD, and the maximum amount is 400,000 KWD.