HOW THE GUARANTEE SCHEME WORKS
FKGK does not work directly with potential borrowers.
HOW THE GUARANTEE SCHEME WORKS
The potential borrower (MSME) applies for a loan at a financial institution registered with the Fund.
The FI (Financial Institution), after conducting standard credit analysis and applying approval standards, will:
Decide if the applicant qualifies for an FKGK guarantee.
Approve the loan for the MSME.
Register the qualified loan with FKGK.
FKGK operates on the premise that the FI will perform the proper risk assessment and verify the eligibility of the borrower and the loan. Ex-ante and ex-post monitoring mechanisms have been developed by FKGK to monitor and control the performance of each participating FI.
