Guarantee schemes or as we call them Guarantee Windows are guarantees for financial institutions to cover the risk for loans issued to micro, small and medium enterprises (MSMEs).
These guarantees are issued only to the principal and do not cover interest, other debt amounts, or other expenses borne by the lender.
So far, FKGK has launched the following guarantee windows:
STANDARD WINDOW
The Standard window is a all-inclusive window. The features that characterize the standard window, in addition to the comprehensiveness that means that this window serves all permitted activities, the standard window is a scheme that guarantees larger amounts of credit, with a long repayment period of up to 120 months. Dedicated to long-term investments as well as for high amounts, it offers low loan rates. It also offers a guarantee of up to 50%.
AGRO WINDOW
The Agro window provides guarantees for registered financial institutions to cover the risk for loans in the Agro sector for MSMEs. The special feature of this window is that it offers guarantees for businesses registered in ARBK or even for farmers who possess a Farmer’s Certificate and NIF (Farm Identification Number). It offers a guarantee of up to 60% of the agricultural loan principal, for guarantees up to 50,000 euros, while for guarantees over 50,000 euros, a guarantee of up to 50% of the principal is offered. The maximum repayment term of the guaranteed agricultural loan is 120 months.
GROW WINDOW
GROW – The Recovery and Green Opportunities Window aims to support access to finance by supporting IRFs for the financing they will do in the field of renewable energy and energy efficiency. Guarantees are offered for the amount up to 50% of the loan principal but not more than 500,000 euros. The maturity of the guaranteed loan is up to 84 months and the purpose of the loan is Energy Efficiency Investments (Building Infrastructure; Equipment; Production Lines and other Energy Efficiency measures). Small-scale renewable energy (wind, solar, biomass or geothermal energy) up to 400 kw.
EXPORT WINDOW
The export window supports businesses, since export is one of the main factors that affects the economic development of the country, FKGK aims to stimulate this segment through this window, regardless of the level of exports that an enterprise may have, through the provision of credit guarantees with preferential rates. Guarantees are offered for up to 50% of the loan amount.
WINDOW WOMEN IN BUSINESS
The Window for Women in Business is aimed at facilitating access to finance for women entrepreneurs as well as advancing financial knowledge, a support which is expected to influence financial security, and the financial and independent empowerment of women. This window offers favorable terms in terms of credit risk. Guarantees will be offered for the amount up to 70% of the loan principal. In addition to the financial component, KCGF is also offering the non-financial component or the technical assistance program for women in business who are being supported in terms of capacity building (financial education and formalization); networking, as well as mentoring.
START UP WINDOW
The Start-Up window aims to facilitate access to finance for new enterprises with adequate financial products, to ensure the growth of newly created businesses as well as the increase of employment. Guarantees will be offered for up to 80% of the loan principal. This window is dedicated to start-up businesses mainly engaged in economic activities/sectors that require basic knowledge. Basic knowledge refers to skills that are developed through previous education, training or work experience. In addition to the financial component, KCGF is also offering the non-financial component or the technical assistance program for new businesses, which will be supported in terms of capacity building (financial education and formalization), networking as well as mentoring.