KREDŻ GARANTŻ FONU A.Ž.
"ONE SME FOR EVERY VILLAGE" PROJECT
With regard to the Protocol signed between EIF and KGF on January 27th, 2010 the description, the application criteria and implementation principals of “One SME for Every Village” Project are shown as below.
1) DESCRIPTION OF THE PROJECT:
PROJECT TITLE : "ONE SME FOR EVERY VILLAGE" Project
PROJECT AMOUNT : 112,5 Million Euro
CountER GUARANTEE
AMOUNT ORIGINATED FROM EIF : 45 Million Euro
SHARING RATE OF EIF : % 50
CountER GUARANTEE MATURITY : 8 Years
RISK SHARING PRINCIPLE
OF THE PROJECT :
%40 CountERGUARANTEE OF EIF
%40 GUARANTEE OF KGF
%20 BANKS' SHARE
SOURCES OF THE PROJECT :
%50 GUARANTEE OF KGF
%50 CountERGUARANTEE OF EIF
TYPE OF THE CREDIT
SUBJECT TO PROJECT: Cash Loans which are tied to Installment Payment Schedules and spot loans which their maturities are at least 1 year.
(*Non-cash credits are not suitable for this project.)
TOTAL LIMIT OF CREDIT PER SME : 1.250.000.-TL
EVERY CREDIT LIMIT : 625.000.-TL.
(* The tranches of credits are limited with 625 thousand TL.)
TOTAL GUARANTEE LIMIT PER SME : 1.000.000.TL
GUARANTEE LIMIT PER EVERY CREDIT : 500.000 TL
GROUP CREDIT LIMIT : 1.875.000.-TL
GROUP GUARANTEE LIMIT : 1.500.000.-TL
GUARANTEE RATE : % 80
(* % 80 is a fixed rate.)
TERM OF CREDIT : 1-8 YEARS
COMMISSION RATE
FOR GUARANTEE
(CREDIT GUARANTEE FUND) : % 1
FOR SMEs IN RURAL AREAS : % 30 (Total project volume)
APPLICATION DEADLINE
OF THE PROJECT : 27/01/2013
2) APPLICATION CRITERIA:
- All kinds of enterprises considered as SME’s operating as natural and legal person can apply for this project:
According to the 19/10/2005 dated and 2005/9617 numbered Regulation on “The definition, quality and classification of Small and Medium Scale Enterprises” all tradesmen and artisans, self-employed people, agricultural enterprises and peasants acting as natural and legal enterprises are classified as SME’s. Also, depending on the number of employees and turnover;
- Excluding public foundations, all foundations, associations (construction, land and building societies) may benefit from this project.
- Universities, enterprises owned by foundations established by universities and research centers non-profit-making shall be classified as SME’s within the scope of this project.
- Commercial enterprises owned by municipalities not exceeding 5000 population or having less than 18 Million TL budget per year shall be classified as SME’s within the scope of this project.
- All commercial enterprise owned by public institutions with less than %25 shares shall be classified as SME’s and may benefit from this project.
- The turnover and the number of employees published in 19/10/2005 dated and 2005/9617 numbered Regulation on “The definition, quality and classification of Small and Medium Scale Enterprises” of The Ministry of Industry and Trade of Turkish Republic, will be taken as a basis in definition of SME instead of EU Criterions.
- Every SME which operates in all locations such as; County town and County/village can benefit from the project without any discrimination. However, 30% of the project amount is reserved to your bank in order to stimulate entrepreneurship in rural areas, for utilization of SMEs located in rural areas having more than 1000 population.
- Including start-ups, all SME’s can apply for this project whose credibility is approved by Banks
- SME’s who have benefited and are benefiting from supports provided by EU funds can also benefit from this project.
3) BANK, CREDIT AND GUARANTEE LIMITS:
- This project will be carried out with banks (http://www.kgf.com.tr/eng/2ortaklar.htm) that are shareholders of our organization and financial leasing companies of those banks.
- The guarantee to be provided is limited to 500.000.-TL with 80% guarantee rate per credit requested, the credit amount cannot exceed 625.000.-TL in this project.
However, on condition that the type and the purpose of the credit is different, up to 1 Million TL credit amount per SME could be given provided that every credit amount is limited to 625.000.TL. For the group firms, the credit limit is 1.875.000.-TL and the guarantee amount is limited to 1.500.000.-TL yet every tranches of credit cannot exceed 625.000.-TL.
- In this project, both credits and guarantee will be provided in TL. In case of a FX request occurs, guarantee for credits will be calculated according to the buying rate of Central Bank of Turkey on allocation date and allocation will be in TL.
- In this project, including financial leasing operations, investment and working capital credits will be provided. Revolving loans are not eligible for this project however, it is installment loans and spot loans that their repayments bonded to redemption plan are eligible for this project. Paid part of the credit will not be extended and in case of a request extending the paid part of the credit again, it is necessary to make a separate loan demand.
- When the procurement of machines by import is in question, it can be guaranteed by KGF’s own equity as a bridging loan on condition that it will not exceed the availability period. After the amount is transferred and it becomes a cash loan, then the credit will be taken into the scope of "ONE SME FOR EVERY VILLAGE" Project. Therefore, a new application has to be made accordingly.
- Restructured and transferred credits are not eligible within this Project.
The minimum maturity is 1 year and maximum maturity is 8 years within the scope of this project.
4) COSTS
In this project, our guarantee commission rate is 1% annually over guarantee risk amount. Also, 250.-TL review fee and in case of allocating the guarantee, an additional guarantee allocation fee 300.-TL will be collected.
5) AVAILABILITY PERIOD AND APPLICATION PROCEDURES
- The deadline of the project is 01/27/2013.
- Based on risk sharing principle, KGF will provide 80% guarantee rate and Banks will bear the %20 risk of the credit.
- Applications are accepted from Partner Banks via CGF Branch Offices.
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