Product Description

KGF shall provide guarantee to credits extended by the enterprises which cannot access to finance due to collateral in type and nature required by the Banks and with beneficiary type of SME.

Resource for Guarantee

Treasury Undersecretary Funds

Related Financial Institutions / Corporations

KGF shareholder banks

Product Maturity

For working capital loan maximum maturity is 5 years, grace period is 1 year.

For investment capital loan maximum maturity is 10 years, grace period is 3 years.

In case it is stipulated capital grace period more than one year, interests on the grace period shall be collected at the end of 1-year periods.

Guarantee Limit

Total guarantee limit per enterprise/ group TRY 12 million

Total guarantee limit per Large Scaled enterprises/ group: TRY 200 million

Maximum Guarantee Rate

90%

Fees and Commission

The guarantee commission is collected based on the guarantee amount of KGF once in advance at a rate of 0,03 % .

Besides, for the applications before 18th of March, the guarantee commission based on the guarantee amount of KGF will continue to be charged at a rate of 1% in advance based on guarantee risk for every year in the consecutive years.

The Bank will not charge any other expenses except for the guarantee commission which is collected based on the guarantee amount of KGF at a rate of 0,03 % and transaction costs to be paid to third parties for the operations (appraisal, insurance etc.) under Treasury Backed KGF Guarantees.

Application Conditions

• The beneficiary is to be a real or legal entity enterprise with qualification of SME,

• The beneficiary and the companies which the beneficiary and/or shareholders are associated in severally or jointly with shares of 25% and above are in the process of bankruptcy, abolishment, suspension of bankruptcy and composition in bankruptcy during application for credit,

• Beneficiary has no overdue debt to the tax office within the scope of the Article 22/A of the Law on Collection Procedure of Public Receivables numbered 6183 and dated 21/07/1953, so as to be documented with a writ obtained on a date until 30 days ago at most during credit extension (if the debt is restructured, the structuring has not been deteriorated),

• Beneficiary should not have any overdue debt to the Social Security Institute within the scope of the Article 90 of the Social Security and General Health Insurance Law numbered 5510 and dated 31/05/2006, so as to be documented with a writ obtained on a date at most 90 days ago from the loan extension (if the debt is restructured, the structuring should not be in breach), otherwise the debt should not exceed 20% of the loan that is subject to application.

• The credits of the beneficiary should not to be one of the credits monitored in the third, fourth and fifth group, in nature of illiquid claim as per the Regulations on Determination of Nature of Credits and Other Receivables by the Banks and regarding Principles and Procedures on Reserves hereof published on the Official Gazette numbered 28861 and dated 24/12/2013, on the recent Credit Limit, Credit Risk, Receivables to be Liquidated Report obtained from the Risk Center of Banking Association of Turkey, according to the date of application to the bank, in accordance with Article 5 of the same regulation, beneficiaries should not have any legally follow-up debts.

• The credits of the beneficiary should not be one of the credits monitored in the third and fourth group, in nature of illiquid claims as per the Regulations on Determination of Nature of Credits and Other Receivables by the Banks and regarding Principles and Procedures on Reserves hereof published on the Official Gazette numbered 28861 and dated 24/12/2013, on the recent Credit Limit, Credit Risk, Receivables to be Liquidated Report obtained from the Risk Center of Banking Association of Turkey, and also, should not be considered under the 5th clause stating that loans have become illiquid within the "loans becoming non-performing as stated within the "financial leasing, factoring, accounting principles of finance companies and regulations regarding financial statements".

• In case where the application of the beneficiary falls into 3rd and 4th category of loans falling within the "Classification of loans and rules and regulations regarding the allocation of provisions" clause published in the official gazette number 29750 and dated  22.06.2016, then banks can demand guarantees for each new and additional loan in favor of the beneficiary.