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Small and Medium Enterprises Financing Program with financial institutions

Enabling you to obtain credit facilities in order to support their working capital, financing purchases of fixed assets and creating new job opportunities within the Palestinian market

Program Goals

 Support SMEs through enabling them to obtain credit facilities in order to support their working capital, financing purchases of fixed assets and creating new job opportunities within the Palestinian market

Targeted Groups

 All projects and economic sectors, except purchasing of lands, real estate sector, building materials and contracting

Eligible Borrowers

  • New loans for new clients who have no any prior dealings with banks or Housing Bank.
  • New loans for new clients who have no any prior dealings with the Housing Bank but they have with other banks.
  • New loans for current clients with Housing Bank but they have no prior credit facilities file with the Bank.
  • New loans for current clients with Housing Bank and have prior facilities file but they have no current dealing with the Bank
  • Age of borrower, in his/her personal capacity (natural persons), shall not either be less than 25 years old or more than 70 years old at the end of financing / loan tenure while operational age of corporates (legal person) shall not be less than two years, or a new project subject to special terms and conditions as provided for below
Financing Purposes

  • Finance of Working Capital (such as buying goods, raw materials, etc.) (with a maximum repayment period of 3 years including grace period which could reach up to 6 months, as the case maybe).
  • Finance Investing Capital: (long-term loans such as buying machinery, equipment, production lines, commercial vehicles, etc.) (with a maximum repayment period of 5 years including grace period which could reach up to 12 months, as the case maybe).
Maximum amount
of 300,000 USD (only loans)and shall not be less than 5,000 USD as a minimum amount

Repayment Basis
Monthly and as per the client’s cash flows

Loan Terms & Requirements
  • The project must have at least two years of operation and more or Startup Business under certain conditions specified below.
  • The total number of workers in the enterprise (project) shall not be more than 25 workers
  • The total sales volume of the enterprise (project) shall not be more than 7 Million USD
  • Ability to perform financial reports to be submitted to the Bank with periodic reports that demonstrate the business progress.
  • The personal guarantee (mandatory condition) for employers, if any, along with the debtor / borrower.
  • The credit facilities provided to one enterprise by the whole Palestinian banking sector must not exceed 750,000 USD inclusive to the new loan.
  • The borrower shall be subject to requirements of monitoring authorities (legal permits, unlisted at PMA, international ban lists, subject to policy of the Bank, etc.) and according to special instructions on this side.      
  • Non-appearance of any liability due onto the borrower with the Bank or other banks.
  • Reconciliation of any rejected cheques due onto the client or the guarantor and amend ranking prior to provision of loan.
  • Confirmed collaterals must be provided and according to assessment of the client’s status through study grounds and according to its availability with the borrower.
  • Signing all necessary and expedient contracts and documents accordingly.
  • For Commercial Individuals: Provision of client’s valid personal identity proof (Identity Card) and VAT Licensed Certificate.
  • For Corporates: Provision of the company’s documents from registration certificates of the Companies’ Controller, Bylaws, Articles of Incorporation and all must be recently authenticated by the Companies’ Controller.
  • Current Account for transactions must be opened.
  • Recent Bank Statement for the last year regardless of the requested loan amount (if dealings were with other banks).
  • If no recent bank statement for the last year is available to prove the client’s income, a physical inspection of the client’s site will be conducted to prove his/her monthly income.
  • Provision of profession practicing license, profession & crafts license, a copy of valid association membership card, a copy of tenancy contract or title deed for the place of business, etc., and the supporting documents for each sector at a time and as the case maybe.
  • Commitment to instructions of the relevant concerned monitoring parties.



Startup Business

  • Entrepreneur (startup owner) must have at least 5 years of experience in the business he/she plans to create with the possibility to approve the years of practical experience as per the academic certificates (like: dentists, legal advisors, accountants and auditors and others)
  • Clients shall be familiar with or have experience in the aspect of new projects which shall not be less than two years with respect to self-employed only.
  • The maximum financing shall not exceed 100,000 USD for Startup Business.
  • Percentage of sharing by the entrepreneur (startup owner) shall not be less than 35% and 50% in the capital of new project as well as from new sources (to verify sources of money by the Bank and under the procedures related to this aspect).
  • Signing of clients on a confirmation that their sharing in the project is from self-sources non-borrowed from any other official or non-official party.     
  • Provision of feasibility study that describes business plan and anticipated cash flows for a term of not less than 5 years where these estimates shall not be less than life of the project

Provision Actions

  • A borrower shall submit a loan application to any of the branches or corporate business areas in Palestine attached with all necessary documents and financial statements and as provided for in the above provision terms and conditions.
  • A decision for loan provision is taken based on the Bank’s special policies and subject to credit study.
  • The loan is paid subject to the special terms of the program whereas it is paid only for the purposes dedicated thereto.
  • The borrower commits to repay installments on its dates.