RIYADH, June 11, 2020 – Alinma Bank has announced the launch of a new guarateed financing program targeting micro, small, and medium sized enterprises (MSMEs). The program, developed in cooperation with the Saudi Arabian Monetary Authority (SAMA) and Kafalah, provides financing and refinancing services in amounts of up to SAR 15,700,000 for qualifiying MSMEs.
Speaking about the new program, Alinma Bank CEO, Mr. Abdulmohsen Al-Fares, reasserted the bank’s ongoing commitment to supporting the Saudi economy through key programs that enable MSMEs to grow and thrive. He further explained that through the bank’s guaranteed financing program, MSMEs would have a range of financing options at their disposal including point of sale financing, salary financing, facility billing financing, working capital financing, existing facility refinancing, as well as financing to enable the execution of expansion plans.
It is worth emphasizing that MSMEs participating in Alinma’s guaranteed loan program are not assessed adminstrative fees or charges (Kafalah program fees are likewise waived), and are not required to provide financing gurantess of any type. The program features a financing term of 36 months with a 6-month grace period. A annual profit margin of no more than 4% is applied to all financed amounts. It shoud also be noted that the program falls under the Saudi Arabian Monetary Authority’s initiatives to support and strengthen the Saudi economy, and to reduce the economic effects of the COVID-19 pandemic.