How does the guarantee portfolio work?
Potential borrower (MSME) applies for credit to a registered FI in the Fund.
The registered FI carries out the regular credit analysis applying the respective approval standards:
- Will decide if the applicant is eligible for the FKGK guarantee,
- Will approve the credit to the MSME.
- Will submit the case to the MIS system.
- KCGF shall check the criteria and receive the request with the idea that the FI submitting the case has already completed the due diligence on credit risk assumption and has determined the eligibility of the borrower and the credit.
- The ex ante and ex post monitoring mechanisms are developed by KCGF to monitor/check the performance of each registered FI.