Guarantee Commission

(1) The Government shall charge a minimum of 0.75 per cent of the amount of guaranteed loan as guarantee commission, which shall not be waived under any circumstances. (2) Depending on the default risk of the project the Government may, by notification, specify commission at an enhanced rate. For the purpose of this section ‘default risk’ means the probability of default by the borrower on whose behalf the Government Guarantee is given, depending on the amount borrowed, the type of industry and the economic situations.