TAKE A DEEP BREATH WITH CGF FUND GUARANTEE OFFERED TO SME'SPURPOSE – WHO CAN TAKE ADVANTAGE?
Credit Guarantee Fund (CGF) works with the purpose of providing guarantee for exporters and producers of goods and services who face temporary liquidity difficulties. By becoming a guarantor to Small and Medium-sized Enterprises (SME) and undertaking their risks, CGF provides the opportunity for SME’s to use bank loans more actively. It also provides the opportunity for small enterprises to take advantage of long term cost effective loans. Thus enterpreneurship receives incentives and by creating opportunities for lending to SME’s, CGF contributes towards economic growth and development.
Implementation of investment into innovation, enterprises using sopthisticated technology, support of export, investments into increase of employment, investments into development of regions are matters that take priority in the work of CGF.
Persons eligible for CGF support within the North Cyprus are: all SME’s, tradesmen and craftsmen, agricultural enterprises and farmers, women and young enterpreneurs.WHAT ARE THE COSTS?
Companies taking out loans with CGF as a guarantor make a one-off payment of 0.5% + stamp duty on the contract. Also a checkover fee of 100 TL per application is charged.WHAT IS THE LIMIT?
For SME’s the guarantee limit is 1,000,000 TL (maximum 60% of the loan amount). The minimal limit is 50,000 TL. For loans in the amount from 50,000 TL to 500,000 TL there is no need for material collateral (mortgage, vehicle, etc.); the loan can be provided with guarantors, in this case 60% guarantee by the Fund can be provided. Therefore for loyal clients who otherwise would not be able to obtain a credit limit due to lack of collateral or absense of thereof, the Fund presents a rare opportunity.WHAT ARE THE EVALUATION CRITERIA?
The project should abide with principles of lending however due to lack of collateral would potentially face difficulty accessing standard loans. The project should be profitable, realizable and sustainable. The staff managing the project should have appropriate skills and professional experience.
The project should provide increase and protection of employment. The project should be of acceptable risks. It should also be environmentally friendly.WHAT TYPES OF LOANS IS THE GUARANTEE PROVIDED FOR?
Guarantee is provided for all types of business loans.HOW MUCH RISK CAN CGF UNDERTAKE?
According to the principles of risk distribution CGF can guarantee up to 60% of the loan amount.