Product Description

The KGF will provide guarantee to the loans to be used by SMEs and non-SME businesses that cannot access financing for lack of guarantee in types and nature sought by banks.


Source of the Guarantee

Treasury Fund


Relevant Organization/Financial Institutions

Banks holding shares in KGF A.Ş., financial leasing companies where the partner banks are controlling shareholders or partner financial leasing companies and partner finance companies authorized under the Law No. 6361.



Maturity for working capital loans is maximum 5 years, with a grace period of maximum 1 year.   

Maturity for investment loans is maximum 10 years, with a grace period of maximum 3 years.

(Interest is accrued and collected at most once a year).


Guarantee Limit

For SMEs, maximum guarantee limit per business / group is 12 million TL

For non-SME enterprises, maximum guarantee limit per business / group is 200 million TL

There is no lower limit for the guarantee amount.

It is possible for an SME to get loans from multiple banks with KGF guarantee, and all loans extended with the KGF guarantee are taken into account in the guarantee limit calculation.

Maximum Guarantee Rate

For   SMEs                                  90%,
For   non-SME businesses       85%,

SMEs and non-SME businesses with export and foreign currency-generating operations can benefit from a guarantee up to 100% for TL/FC loans extended by Eximbank or Banks.

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

  • 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 Centre by the date of application to the Bank, the Beneficiary should not be classified in the category of non-performing loans except for loans classified in the third and fourth group 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", Article 5, 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,
  • If, at the time of the application, the beneficiary has loans classified in the third and fourth group under the "Regulation on Procedures and Principles Governing the Classification of Loans and the Provisions to be Provided" published in the Official Gazette dated 22/06/2016 and numbered 29750, the Bank may still request guarantee for a new or additional loan to be extended for the beneficiary.