SME Loans

Amount:
Loans may range from 6 million up to 300 million Iraqi Dinars. Size will also depend on how well the borrower can service the loan requested. For the IVGS program, however, loans may not exceed ID 20 million.
Tenor:
Term of loan is a minimum of one year and a maximum as negotiated. Most loans are for a term of two years.
Interest:
Interest charged is capped at 10% for the USAID -Tijara and Inma grants, but ranges down to 7% in the case of the IVGS program targeting displaced entrepreneurs. Donor starter capital financing to ICF-SME has enabled shareholders to charge SMEs below-market interest rates.
Total cost of loan:
Additional loan fees may total up to 0.60% of loan principal. If the bank requires a loan guarantee through the Iraqi Company for Bank Guarantees (ICBG), an additional 2% fee on up to 75% of loan will be charged. This would raise the borrower’s total cost an additional 1.5% of loan amount.