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The main function of the department consists of the supervision and the effective management of all Sovereign funds, corporate loans, and local loans portfolios that have derived from funds placed at KIA's disposition in a broad range of multi-currency assets. Also, the Loans Department ensures that all lending ventures are carefully examined and validated, explicitly defined and well-documented in all instances, covering domestic and international loans that are politically oriented or geared for economic and financial development.

Loans Department objectives include analyzing the financial status of international and domestic applicants to evaluate suitability for loans. The signing of agreements with the applicants, setting terms and conditions, and monitoring indebted States, and working with indebted States to settle the debts and exchange some debt partially into marketable assets or developments projects.​