Kar-O-Bar Facility

Kar-O-Bar Facility

What is Kaar o Baar?
Kaar o Baar (KB) facility is designed for established small businesses which have been operating as going concerns for a minimum of one year and have had a satisfactory account relationship with a bank for the same period. Small businesses which operate in trading, manufacture and/or production will be given preference.

KB is a revolving line of credit linked to a business current account that gives the SB (small business) temporary access to additional funds up to a pre-approved limit usable for working capital needs. Its main purpose is to cover short-term working capital needs.

Program details & benefits:

– A revolving credit line with flexible principal repayments
– No fixed or minimum repayments
– Interest will only be charged upon utilization of SB debit balance

? (Type A) Facility backed by safekeeping of Sharia Qabala: with a limit of up to AFN 2.5 million
? (Type B) Facility backed by property mortgage registration: with a limit of up to AFN 5 million
? Facility size to be determined as per the SB’s repayment capacity (based on cash flow statement analysis) and customer’s account turnover


? Competitive and negotiable interest rates
? Facility Arrangement fee: One percent of the facility amount payable at the time of disbursement

Terms and conditions

Facility to be disbursed and paid directly to SB supplier.

For (Type A) Facility:
Deposit of original Title Deed (Sharia Qabala) with bank. Value of collateral should not be less than 200% of facility amount.

Negative Lien Letter
One corporate guarantee by a registered company.
Acceptance of movable fixed assets as collateral after hypothecation and Central Bank (DAB) registration.

For (Type B) Facility:
Mortgage registration of original Title Deed at court under bank’s representative name is deemed mandatory.
Personal guarantee by SB business owners.
Acceptance of movable fixed assets as collateral after hypothecation and Central Bank (DAB) registration.

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