Product Description

KGF will provide guarantee to the loans to be used by SMEs that cannot access financing for lack of guarantee in types and nature sought by banks and with 2017 annual revenue of  less than 25 Million TL.


Source of the Guarantee

Treasury Fund


Relevant Organization/Financial Institutions

14 Banks holding shares in KGF A.S. ( Ziraat Bankası, Albaraka Türk Katılım Bankası, Alternatif Bank, Denizbank, QNB Finansbank, Şekerbank , Türkiye Ekonomi Bankası, T. Halk Bankası, T. Vakıflar Bankası, Garanti Bankası , Vakıf Katılım Bankası, Yapı ve Kredi Bankası, Ziraat Katılım Bankası, Akbank )



The grace period is maximum 6 months, the total maturity is fixed 36 months.


Guarantee Limit

For exporter and manufacturer SMEs, maximum guarantee limit is 800.000 TL

For standard SMEs, maximum guarantee limit is 200.000 TL

It is possible for SMEs to use loans with more than one bank and all of the loans that are used with  KGF guarante are taken into account in the calculation of the guarantee limit.



Maximum Guarantee Rate

Beneficiary    Guarantee rate (%)
Manufacturer/Exporter SMEs 80%
Standard SMEs 80%


Fee and Commission

At the time of request for a letter of guarantee, the bank charges the beneficiary a one-off guarantee commission at a rate of 0,03% (three per ten thousand) of the guarantee amount for each disbursement of guarantee.

In loans to be disbursed under the Treasury-funded KGF guarantee, the Bank cannot charge any additional fee other than the expenses to be paid for procedures to be fulfilled by third parties (appraisal, insurance etc.) and the commission payable to the KGF (three per ten thousand).



Application Requirements

General Criteria
  • Beneficiaries are required to be one of the individual proprietorships or legal entity businesses established in accordance with the laws of the Republic of Turkey, operating at home or in Free Zones in Turkey.
  • There should be no decision of bankruptcy, liquidation, suspension of bankruptcy or composition for bankruptcy from the companies in which at least 25% of the shares are owned by the beneficiary or by the beneficiary and/or his/her partners jointly or individually.
  • The beneficiary should not have any overdue debt to the tax Office under the Article 22/A of the Law on Collection Procedure of Public Receivables dated 21/07/1953, no 6183, nor to the Social Security Institution under the Article 90, paragraph six of the Social Security and Universal Health Insurance Law dated 31/05/2006, no 5510, as documented by a letter dated within the last 90 days at the time of the loan disbursement, (where the debt has been restructured, the restructuring must not have been broken), where there is a debt within this scope, it must be restructured and the restructuring must not be broken, failing which such debts must be paid as a priority through the loan provided with KGF collateral provided that the debt in question does not exceed 20% of the loan,
  • According to the most recent Credit Limit, Credit Risk and Receivables to be Liquidated Report issued by the Banks Association of Turkey Risk Center by the date of application to the Bank, the Beneficiary should not be classified in the category of non-performing loans under the "Regulation on the Principles and Procedures Governing the Classification of Loans and Other Receivables by Banks and Corresponding Reserves to be Provided for Them", nor should be classified under receivables monitored in the account "Past-Due Loans and Receivables Qualified as Loss" under the provisions of the Regulation on Accounting Practices and Financial Statements of Financial Leasing, Factoring and Financing Companies published in the Official Gazette dated 24/12/2013 and numbered 28861,
  • The loans to be allocated to beneficiaries under this Protocol is subject to the requirement that there should be no unpaid commission debt from previous periods.