FINANCIAL ENERGY SUPPORT PACKAGE FOR AGRICULTURAL PRODUCTION

Product Description

This package relates to the financing of the payment of overdue and/or new agricultural electricity bills to complement the operating expenses of Irrigation Unions, Irrigation Cooperatives and farmers, including real persons and legal entities

Resource for Guarantee

Treasury Fund

Related Financial Institutions / Corporations

Ziraat Bankası

Product Maturity

A term of 60 months for overdue agricultural electricity bills

A term of 12 months for new agricultural electricity bills

Guarantee Cap Rate and Guarantee Rates

Loan Products Available

Working Capital Loan

Fee and Commission Rates

  • The KGF collects a one-time upfront commission from beneficiaries amounting to 0.35% of the guarantee amount through the lenders in return for the suretyships it provides. The beneficiaries are charged commission up front in the event of restructuring at a rate of 0.35% of the guarantee balance through lenders.
  • The lender may collect from the beneficiaries a one-off commission equal to 0.5% of the loan amount in cash for each loan disbursement from the beneficiaries in return for the loan.

Special Conditions

  • Within the scope of the package, loans may be extended exclusively for the financing of overdue and/or new agricultural electricity bills.
  • A working capital loan allocated to a beneficiary who has an overdue agricultural electricity debt will be paid directly to the electricity distribution company to which the debt is owed.
  • New agricultural electricity bills will be paid in accordance with the loan product that will function as an automatic payment order issued by the lender.
  • Submission of a bill/digital bill record is required for loans to be received as part of the package.
  • As regards to any overdue agricultural electricity bills, the debt status document obtained from the electricity distribution company is required to be presented during the application.
  • As regards to new agricultural electricity bills, an automatic payment order and a sample past-dated bill, or (if there is no past bill) a copy of the new subscription contract, should be provided during the application, and a bill/digital bill during the disbursement of the loan