Iraqi Company for Bank Guarantees
en ar ku 
How to Apply
Site Map


en ar ku 
Applying for an ICBG Loan Guarantee

The SME borrower should visit one of the participating banks to make a loan application. The bank then processes the loan ‎application including whether it will make the loan without an ICBG guarantee.

If an ICBG loan guarantee is sought, the borrower must meet ICBG’s eligibility criteria ‎and the bank will then present the guarantee application to ICBG. ICBG does not deal ‎directly with borrowers.


The Application Process

(JPG)
Application Process


Eligibility Criteria

  1. Eligible loans are for working capital and fixed asset acquisition.
  2. Working capital loans may not exceed 360 days in tenor.
  3. Fixed asset loans may be from 1 year to 5 years in tenor.
  4. All loans should have monthly repayments.
  5. Loans between $5,000 and $250,000 (denominated in either US dollars or ‎Iraqi dinars).
  6. Loans should bear market rates of interest.
  7. The borrower must be registered in Iraq with the relevant official body.
  8. The borrower must have at least 2 full-time employees and not more than 49 ‎full time employees.
  9. The borrower must not be a subsidiary of, or affiliated through common ‎ownership with, a company or branch of an enterprise that has more than 250 ‎employees, nor can the enterprise hold a majority stake in larger companies.
  10. No default (by the borrower, its main shareholders, or its guarantor if any) ‎under any bank loan shall have occurred during not less than the 3 years ‎prior to the date of the loan request.
  11. All potential or actual conflicts of interest must be disclosed in full in the ‎application by the borrower and by the participating bank. Non-disclosure ‎can result in the revocation of the guarantee, if approved by ICBG.
  12. The borrower must not be engaged in any of the prohibited activities listed ‎below.


Eligible Sectors

Type of Business
Manufacturing
Services
Tourism
Construction
Agriculture
Retail
Trading


Prohibited Loans

Loan purposes ineligible for consideration under the ICBG Loan Guarantee program include the ‎following:

  1. Manufacture or sale of munitions.
  2. Manufacture or sale or trafficking of illegal drugs or narcotics.
  3. Operation of a casino or other entity involved in the gambling industry.
  4. Currency speculation
  5. Securities investment.
  6. Banking or insurance (with the exception of micro-finance institutions).
  7. Any activity illegal under Iraqi law or applicable international laws and ‎conventions.
  8. Loan proceeds may not be used to reschedule or retire existing debt of the ‎borrower to the bank or other lender.
  9. Assisting any project or activity that contributes to the violation of internationally ‎recognized workers rights, including safety at work, and rules and regulations in ‎force in Iraq.
  10. Consumer purchase or sale transactions.
  11. Loans whose terms are not in conformity with modern and generally-‎accepted credit criteria and prudent lending practices.
  12. Any activity that is illegal or environmentally hazardous or dangerous to human ‎health.
  13. Loans that violate Iraqi or international banking standards relating to money ‎laundering or the financing of terrorism.


Sample Loan Guarantee Application Agreement


PDF - 119.9 kb
Loan Guarantee Application

Copyright © 2006 ICBG. All rights reserved. Site created with SPIP.   Valid XHTML 1.0!
Other Resources