In this article, we want to share the Credit Guarantee Fund (KGF), which is an important issue that the public, industrialists, traders, business people and financial environment are currently on the agenda.

In short, to mention the Credit Guarantee Fund; KGF is an organization that guarantees according to the rates specified in credit limits and loan types, especially for companies that have a shortage of ‘ collateral ‘ at the point of access to credit and financing opportunities.   It is a structure established together with the partnership capital of 21 banks and the funds of the Undersecretariat of Treasury.  In addition, organizations such as OBB, KOSGEB, TESK, TOSYÖV, MEKSA are also partners in this structure.

I want to follow a simple and understandable method for the KGF bail system, which you hear many times a day in commercial life and spend time on this topic.

KGF for bank loans; you can request the amount of financing you need for your company from any KGF Surety Bank that you work with or want to work with.  The bank, on the other hand, will conduct a limit study that gives you a KGF guarantee within your creditworthiness and rating rates.  If you have the opportunity to use KGF from the Treasury, the surety will be up to a maximum of 85% of the total loan, and if you have the opportunity to use KGF credit with equity, the surety rate will be up to a maximum of 80%.  

According to the Official Gazette published on March 10,2017,the collateral rate of SME-compliant enterprises cannot exceed 90% of the loan amount +interest, dividends, rent.  For companies that fall outside the definition of small and medium-sized businesses, this rate cannot exceed 85%.  The total bail limit for the institution has been increased to TL 250 billion for the whole country.

Let's say you need funding. But the collateral ( mortgage, customer check, pledge, etc.) that will meet this financing need is not available, or you want to meet your financing need with your business activity.  By entering your information into a portal called portfolio Guarantee System ( PGS), the bank will request a guarantee limit from the KGF in accordance with your activities. This limit; your bank work will be determined in the light of your regular payments, your lack of any negative records, and above all in the light of your trade volume and financial indicators.  Banks in the PGS system use the loan equally and sequentially within the amount generated as a result of this limit study and the collateral rate of the KGF.  Banks using this system can set a maximum limit of 2,940,000,-TL and use a limit of 2,500,000, TL bail (85% surety ) and a maturity plan is offered in the form of a maturity of at least 6 months and a maximum of 36 months.  Exporting firms also; maturity increases to 60 months. They make use of Treasury-backed loans without grace period.


The above mentioned considerations define the limits of banks with the portfolio guarantee system.


KGF, bilahare, sets limits from a system called portfolio Limit system ( PLS).  According to these definitions;

For Women Entrepreneurs; 2.500.000, - TL

For young entrepreneurs; .2,500, 000, - TL

For SME manufacturer; 4.500.000, - TL (investment loans have grace period),

Although KGF bail is applied to enterprises that are active for 1 year and above with general lines, KGF does not give bail in cases of concordat, protested promissory note, check, tax and SGK debt that is not discovered during the presentation period.

KGF for Eximbank loans;   

Eximbank loans constitute the most important pillar of the KGF process. KGF can provide both Treasury and equity loans in the amount of 0 collateral for exporters and companies with foreign exchange earnings. Eximbank loans have an exclusive credit policy for exporters and companies with foreign exchange earnings in Turkey, such as pre-shipment, reissue, post-shipment, investment, export preparation. KGF-Eximbank process is carried out directly through KGF instead of banks.


Ferhat TOMO

Miad investment and Commercial Affairs Officer


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