Guaranteed small LoansSmall loans guaranteed
85 in 5 month installments of 198.37 pounds. The interest is £491.85, the interest is 236.1% pa (variable).
State-guaranteed credits for social NPO's (without personal guarantee)
This is the first opportunity for NPOs to benefit from favourable, socially advantageous credit conditions guaranteed by the state to finance an NPO project or working capital, without having to provide a personally guaranteed credit. Recently, the State Small and Midsize Enterprises Garantie Fund heralded the opening of a new credit channel for the provision of NPOs' healthcare, educational and charitable service to the authorities, which will continue to be in force until further notice. However, the NPO has not yet given any indication that it will be able to provide any of its NPOs with credit for their work.
Under this new agreement, NPOs will no longer be obliged to give a face-to-face guaranty (which is necessary for the Fund's other credit tracks), but will have to cede to the lender banks the resources to be disbursed to them in connection with their commitment to the State if the loans are not reimbursed on time.
Lending in this area will be made to NPOs which provide NPOs with service in the above areas and which meet the following conditions, in supplement to the Fund's other lending conditions: NPO has a commitment with the State (valid for at least eight month after filing a request for a loan) in a amount 120% higher than the amount of the request for a credit; if NPO receives assistance under the Budgetary Foundation Act, provided that no more than 50% of NPO revenues in the two years prior to filing the request for a credit come from such assistance.
Some years ago the State Guarantee Fund was set up by the Ministry of Finances (Accounting Department) to assist small and medium-sized enterprises, whether active or in the start-up phase, in borrowing to fund operations and grow. This fund allows financial institutions to negotiate favourable and competitive conditions with creditors, such as the availability of minimum security, relatively low interest charges and favourable redemption plans.
Loans are granted by banks, while the State commits itself to compensate them if companies fall into arrears with the repayment of loans.