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

Maximum guarantee limit per business / group for female entrepreneurs is 1 million TL

Maximum guarantee limit per enterprise / group for SMEs with Manufacturer, Investor, Export and Foreign Exchange earning activities maximum 25 million TL

Maximum guarantee limit per enterprise / group for other SMEs maximum 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


Guarantee rate (%)


Exporters and those with foreign currency-generating activities


















Agricultural enterprises




Women and young entrepreneurs













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,
Specific Criteria
  • In case of female entrepreneurs, at least 50% of the total shares of the firm operating based on a business idea must be owned by women who have not turned the age of 55 and who are at least primary school graduates,
  • In case of Young Entrepreneurs, at least half of the total shares of the firm operating based on a business idea must be owned by people who have turned the age of 18 but not 30 and who are at least primary school graduates, with a commitment that the Young Entrepreneur shall be actively involved in the management and activities of the enterprise,
  • In case of an Investment Loan, the firm is required to provide the Investment Feasibility Report, Investment Incentive Certificate and other documents, with also a written commitment that the Loan shall be used for the purposes of the project,
  • Firms that will use a loan under the Centers of Attraction Project are required to provide the certificate proving that the company falls within the scope of the Centers of Attraction Project.
  • In case of an export credit, a document (bank declaration, firm declaration CD, etc.) is required to prove commitment to use the loan for export purposes.