Indirect Guarantee: Apply to Financial Institutions
SMEs apply for loans to the contracted FIs. After conducting credit investigation, if the FIs find the SMEs short of collateral but eligible for credit guarantees, they may forward the applications to Taiwan SMEG for credit guarantees. The FIs should not extend loans until the Taiwan SMEG grants guarantees on the applications.
The Indirect Guarantee
1. Apply for loans
2. Apply for credit guarantees
3. Notifies of guarantee approval
4. Extend loans
5. Inform of financing & transfer guarantee fee