The Best Business Loans in Iraq

Compare the best options on the market and choose the one which best adapts to your day to day needs.

Further Below: Our Guide To Business Loans in Iraq, Everything you need to know.

1. Byblos Bank

  • Flexible and big loans of up to USD 30,000
  • Floating and competitive interest rates 
  • Loan tenure of up to 4 years 
  • Offers 100% financing ( loan purpose)
  • Offers loans in USD and IQD depending on the currency of income
  • Allows cash collaterals
  • Fast application process
  • Excellent loan conditions

2. BBAC Bank  IRAQ

  • Get a loan of up to  IQD 20 million 
  • Regressive interest rates of 12%
  • Repayment period of up to 24 months
  • Applicants with stable income are considered
  • Fewer application charges
  • Favorable for public sector employees
  • Laxer free eligibility criteria
  • Fast concession

3. Mansour Bank (MBI)

  • Big loan amounts of up to IQD 75 million
  • Competitive monthly interest rates
  • Favorable repayment periods of up to 5 years
  • Allows top-ups to outstanding loans
  • Easier application and accessibility through online sites
  • Loan purpose is not limited
  • Excellent loan conditions
  • Eligible to clients with income
  • Private sectors are advantageous

Business Loans in Iraq, All You Need To Know:

We provide all the information you require regarding financing your company in Iraq. This covers the many credit or grant options that are available, the elements to take into account when you contract these loans, the standards to meet and evidence that is needed, and how to choose an offer that best meets your needs.

[UPDATE] What economic measures has the Government implemented for companies through covid-19?

Although Covid-19 had a negative impact on Iraq’s economy, the impacts were less of a danger as a result of the steps the Iraqi government took to support enterprises and companies in being resilient throughout the valley. With the largest financial infusion in history, the Iraqi government entered the market and provided a variety of financial support for various economic sectors. 

  • The Central Bank of Iraq initiated a reduction of the exchange rate and the balance of payment of the USD/ID by 22.7% in December 2020.
  • The reserve requirement was reduced from 15% to 13% by the CBI to widen available funds for operation. It also reduced the interest payment by SMEs using the direct lending initiative of ‘one trillion ID’
  • With initial contributions of $20 million from the CBI and $5 million from the Trade Bank of Iraq, the Central Bank of Iraq established a program to gather donations from financial institutions. This helped in increasing liquidity to settle financial needs.
  • On March 22, the government postponed the collection of levies from all its residents and halted payment obligations for the residential land it had leased. Mortgage loans and other financial credits offered by the CBI were postponed for 3 months. This was only applicable to existing credits during the pandemic.
  • To lessen the effects of the pandemic, Iraq Revenue Regulatory also postponed the payment of import duties. Following certain guidelines, this strategy also imposed VAT on all imported items.
  • Loans were made available to start-ups through the Credit Guarantee Scheme. These loans offered favorable borrowing terms that would support the expansion of the company and long-term liquidity maintenance. 
  • The CBI allocated funds to banks and other lending institutions to ensure a continuous money supply in form of credits to those adversely affected by the pandemic. This was inclusive of business start-ups and other private entities.

Distinguishing types of company profiles

The kind of finance you can obtain might be greatly influenced by the type of company profile you have. Depending on a few distinct aspects, lenders have varied requirements for different kinds of businesses.

Read through our options


  • Entrepreneurs: Given that it has not yet been founded, this company differs from all others. The business owner spends time researching the market, determining the demands of the market, and developing a workable solution. For this idea to work, funding is needed.
  • Start-ups: This particular form of business has been in existence for a relatively brief time. Therefore, it lacks seniority, its business operations are unstable, and it generates fewer earnings than losses.
  • Consolidated companies: These businesses have been in operation for some time and frequently qualify for large loans. They can withstand challenging economic times because they are stable enough to do so. They earn more income than losses and have a high level of solvency.
  • Large companies: They primarily operate on a national or international scale. They are eligible for sizable loans of millions of euros that can adequately cover their needs. They include The Central Bank of Iraq and Schlumberger.


  • Legal entities: They refer to those in the professional field who are asking for loans to fund their venture. According to their level of income, they are rated. They receive loans that are customized to a single person, regardless of their business characteristics.
  • Natural persons: These are persons who are unemployed but have a source of income. Since they frequently use personal loans for personal undertakings like buying a car or appliances, they typically qualify.

Characteristics of business loans

You want to choose the greatest financing option for your business that will improve your financial status and be easy to repay while you search for funding. Due to this, you need to be aware of the qualities of a good loan:

  1. Amount. This element is influenced by several variables, including the loan purpose, development prospects, and bank standards, among others. These variables include the sort of company profile where large enterprises acquire large loans.
  1. Cost. The cost of a loan varies among different lenders hence as a borrower you should evaluate various options to select one with a cheaper cost. However, lending rates in Iraq have increased due to the Russian-Ukraine war effects but are still attainable to borrowers.
  1. Purpose. Different types of finance are attracted to various ends. Before approving your application, the lender will assess your solvency if your objective calls for a sizable loan.
  1. Repayment period. Lenders will make every effort to design a repayment schedule that is appropriate for the kind of financing you receive. While minor loans may be repaid in a matter of months, large loans often have longer repayment terms of around 8 years or more.
  1. Linkage. Particularly in banks, finance is always accompanied by ancillary items like insurance, business accounts, or other forms of compulsory hiring.
  1. Terms of repayment. A lender might prefer that his borrowers pay back the loan in regular installments, whilst another might like to receive the entire loan amount, including interest and commissions, after the loan term.
  1. Grace period. This is a period during which the lender permits the borrower to skip a payment without incurring any penalties or additional fees. The grace period’s duration varies depending on the entity.
  1. Speed. An entity may take a variety of times to transfer the funds to our account. Others could take weeks or months while some only take a few days. Therefore, think about consulting about this so you’ll know when to start.
  1. Guarantee. This criterion is determined by a few variables, including the loan amount and the nature of our company’s profile.

Where to get business loans

Since the previous financial crisis, the Iraqi economy gave birth to numerous lending institutions which have pushed the lending sector into continuous expansion. This led to the emergence of alternative financial organizations offering competitive lending terms and ended the monopoly of banks that had held the lion’s share.

The current lending organizations in Iraq are listed below: 

  • Banks: The loan market is still under their control. Although they primarily offer finance to enterprises with high solvency, they have developed various financial products specifically for small-business owners who are eligible for loans. 
  • Companies and private capital lenders: have climbed the ranks to the top. They offer great financing terms that are either on par with or better than those offered by banks. Most importantly, they provide a straightforward, quick, and online application process.
  • Alternative financing platforms for crowdlending: Similar to private capital lenders, these platforms offer excellent lending terms with quick applications and discounts. A borrower and investor are connected via the platform, and the investor is free to contribute to our working capital or not. In around two days, the borrower can get a response.

The borrower has total discretion over which lender to select. Therefore, before you sign up for a certain financial product, you should conduct a thorough examination of your financial condition, needs, and capabilities.

Business loan conditions

The Iraqi Government and Central Bank of Iraq control lending in Iraq, laying forth all the prerequisites that companies must satisfy. Nevertheless, depending on their financing, some entities might impose some special criteria. 

Here are some of the most common conditions:

  • National registration: When a company is based beyond the Iraqi borders, where the CBI’s requirements do not apply, lenders will be reluctant to lend money to it. 
  • Annual income: The most recent year’s income records, as well as, in some situations, information from prior years, may need to be provided. The lender will evaluate your financial status and level of solvency using this data.
  • The seniority of the company: Your business must have passed through the stage of stagnation and arrived at stability. The lender will be assured by this that you can afford the loan you are seeking for. For finance, the majority of lenders want at least 12 months of continuous operation. Some loans, nevertheless, are intended for new businesses.
  • Creditworthiness: Your eligibility for this financial instrument will be determined by the lender after reviewing your credit history and debt to income ratio. So, make an effort to keep your credit score high.

The first prerequisites you must fulfill are those listed above. Be aware that some lenders may impose less stringent or stricter restrictions.

Documents needed to get funding

You’ll need to present supporting documentation to the lender to demonstrate that you adhere to all of their explicit requirements. For this reason, you should make sure you include all the required information.

  1. Registration proof that the business is legal
  2. Documents showing your tax status
  3. Documents showing the company’s turnover
  4. Documents showing your financial position as the business owner
  5. Corporate tax payments

The requirements are not limited to the above, and different entities may require different means of their submission (either online, sending via mail, or a courier).

Other forms of financing for companies

  1. Business credit lines

The borrower has access to a fund pool attributable to this financial solution. Unlike with loans, the borrower is free to take out the money as needed, up to a specified amount. However, rather than having to pay back the entire amount borrowed, the borrower will only be expected to pay back the main amount they took out.

  1. Factoring

Small firms with simple demands, like paying back loans and the like, benefit the most from this. Direct payment of our supplier(s) invoices is made by the lender. After then, we must pay back the loan amount according to the lender’s predetermined terms and conditions.

  1. P2B or crowdlending loans

These are online channels that link a borrower with an individual investor. It is up to the investor to decide whether or not to invest in our company. Depending on the crowdlending site we choose, the loan’s terms (amount, cost, and period) will vary.

  1. Loans with mortgage guarantee

These loans heavily rely on our ability to offer adequate payment guarantees. After receiving the guarantee, the lender takes some time to review it before approving the loan. Due to the lengthy appraisal procedures involved, this takes longer than the preceding forms of financing.

Products to invest in our company

  1. Equity crowdfunding

The development of new technologies has been accelerated by the evolution of financial systems. Through these platforms, a private investor can contribute to our business project and, in exchange, receive a portion of our company, subject to the success of the venture. By doing this, we can get funding or liquidity without taking on debt.

  1. Business Angels

A borrower can obtain funding through business angels, particularly if they have significant company projects. In contrast to equity crowdfunding, which relies solely on individual investors to determine which borrower to fund, the Business Angels management collaborates to make this choice.

  1. 3F (Friends, Family, Fools)

This refers to a source of financing where the terms and conditions are not fixed. Instead, they are agreed upon by the parties involved. They are cheaper and more flexible compared to banks

Aid for the financing of companies

  1. Capitalization of unemployment

This is a choice that a self-employed individual has if they need funding to launch a business. They could want to take all of the unemployment benefits to which they are entitled and utilize the money to launch their firm.

  1. Crowdfunding

A borrower can get in touch with a sponsor who is enthusiastic about their project through these internet sites. So that potential investors are aware of what they are getting into, the borrower is obligated to publish the project.

About this page, our methodology

What this page is for: We conduct thorough research on the greatest and most pertinent data about finances and everything you need to know to obtain loans like an expert. We, therefore, ensure that you are satisfied with the financial product you obtain and that it is the right choice for your financial needs

Source: The finance information, the types of credits, their current lending rates, and their regulations have been drawn from the Iraqi Law on consumer credits, The Central Bank of Iraq, and other reliable reference portals.

Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.

About Us: FUNDGECKO is a website that serves as a comparison tool for our customers who may not be as knowledgeable about consumer finance. We take you step-by-step through the entire process so you may compare loan offers and choose the one that best fits your financial circumstances.

Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.

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