Loans to Businesses

What is investment loan?

Investment loans are designed to finance large, medium, small, and very small enterprises for the construction, expansion, and development of real estate, as well as the acquisition of equipment related to the establishment of new activities, capacity expansion, or rehabilitation.

What types of loans are offered?

• Establishment of new activities in various economic sectors through equipment and construction project financing;
• Expansion of existing economic activities, including the construction part;
• Acquisition and renewal of production equipment;
• Construction, expansion, and development of real estate;
• As an integrated section of the project to be financed, the bank also provides financing for the working capital required for the start of operations.

Who is eligible for it?

Eligible for investment loans are companies that are customers of the bank and engaged in economic activities related to the production of products and/or services, as well as mutual organizations.

What are its advantages?

• Financing can go up to 100%;
• Repayment terms can extend up to 12 years;
• Very competitive interest rates starting from 5.25%, with the possibility of discounts from 0.25% to 3% for small and medium-sized enterprises (SMEs) in the startup or business expansion phase, depending on their location in specific zones and investments located in the northern provinces;
• Flexible repayment frequency: monthly, quarterly, or semi-annually;
• Option for early repayment;
• Ability to monitor the loan using the CNEP Connect application.

What types of guarantees are accepted?

• Mortgage of real estate property;
• Extended mortgage covering the constructed buildings;
• Pledge of production equipment;
• Pledge of acquired rolling stock;
• Pledge of cash vouchers, and the like;
• Financial guarantees.

Solutions to serve your business

What are operating loans?

Operating loans are short-term financing solutions that help businesses manage temporary discrepancies between income and expenses, thereby meeting their cash flow needs.

What are the types of operating loans?

There are two types of operating loans offered by CNEP-Banque : non-revolving operating loans and revolving operating loans.

What are non-revolving operating loans?

• Overdrafts
• Cash facilities.

What are revolving operating loans?

• Revolving overdrafts
• advances on invoices
• advances on stocks and/or merchandise
• advances on securities
• advances on public contracts
• mobilization of payment rights
• commercial discounts
• campaign loans

Who is eligible for this type of financing?

Both individuals and legal entities engaged in commercial, professional, or production activities, as long as their turnover has been domiciled in CNEP-Banque for more than six months.

What are the characteristics of operating loans?

The loan amount is determined based on the entity’s needs, its debt capacity, and its profitability.

The total amount of various operating credit authorizations for a single client cannot exceed 50% of the turnover entrusted to the bank. The maximum duration for operating credits is 12 months, with the possibility of renewal.

What is the financing product “MELK IJARI”?

MELK IJARI is a financing product that allows the acquisition of a commercial property through a lease with an option to purchase contract, along with the transfer of all rights, obligations, and risks associated with the financed property to the tenant at the end of the contract.

Who is eligible for it?

• Individuals or legal entities under Algerian law;
• Engaged in commercial, professional, and/or industrial activities;
• With a minimum of one (01) year of activity or new businesses in creation that are of interest to the bank and the national economy, or new businesses associated with existing companies, including expanding business activities by creating new ones.

What are the advantages?

• The financing amount can reach up to 100% of the cost of acquiring the real estate;
• The lease term can extend up to 15 years;
• The possibility of repayment grace period of up to 3 months;
• Rent payments can be made on a monthly or quarterly basis;
• The residual value of the property represents 1% of the acquisition cost of the property.

What is a signature loan ?

A signature loan is a form of credit where there is no immediate disbursement. The bank lends its signature to the client, guaranteeing their solvency to creditors and committing to fulfill obligations in case the client fails to do so.

Signature loan, or commitment by signature, allows the client to:

• Avoid immediate disbursement;
• Receive advances;
• Or defer a payment.

These loans are granted to businesses engaged in the production of goods and/or services, excluding those involved in trade and foreign trade operations.

Who is eligible for this type of financing?

Eligible for signature loan are:

• Companies domiciled with CNEP-Banque whose transactions are partially or fully managed through CNEP-Banque counters;
• Newly established clients who have not entrusted their turnover to CNEP-Banque but whose project presents commercial interest for CNEP-Banque;
• Algerian subsidiaries of foreign companies, domiciled in Algeria, to whom CNEP-Banque may require a counter-guarantee issued by a first-rate foreign bank.

What are the forms of signature loans?

CNEP-Banque grants the following types of signature loans:

• Endorsements (aval);
• Guarantees for public and private contracts;
• Tax guarantees;
• Various guarantees;
• Letters of guarantee in favor of other professionals.