TEPIX III Guarantee Fund

The TEPIX III Guarantee Fund is divided into two Sub-funds targeting specific categories of enterprises. Specifically:

1. 1. The “General Entrepreneurship” Sub-fund covers all SMEs.
   2. ΤThe “Entrepreneurship for Newly Established Enterprises” Sub-fund targets very small and small enterprises up to 5 years of operation.

TEPIX III Guarantee Fund fully subsidizes the guarantee fee for the entire duration of each loan agreement.

Through TEPIX III Guarantee Fund, the following loans are provided in the two Sub-funds:

• Investment Purpose Loans
• Special Purpose Working Capital Loans
• Special Purpose Working Capital Loans with Revolving Credit

A two-year interest subsidy of up to 3% is provided.

Expenses must be documented with supporting invoices and justifications to ensure their eligibility and correlation with the submitted business plan, and such expenses must not have been paid (invoice settlements) before the funding application submission.

Notes:

1. For working capital loans, credit invoices issued up to 6 months before the loan request date in OPSKE are accepted.

2. For investment loans, expenses paid from the investment loan must concern enterprise investments and invoices must not have been issued before the funding application submission in OPSKE.
3.  Partially paid invoices before application submission are financed only for the unpaid portion, with the disbursement credited to the invoice issuer.
4. Invoices paid from the enterprise’s own funds after the application date in OPSKE are financed normally, with disbursement credited to the enterprise’s current account.
5.  Fully paid invoices before application submission in OPSKE are not eligible for funding. Disbursements are made by the credit institution.

Prohibited expense financing includes:

• Interest payments on debt (except interest subsidies provided by the Fund covering part of the loan interest).
• Land purchase exceeding 10% of the underlying loan amount.

• Fees, taxes (except VAT), and contributions.

IMPORTANT! Enterprises must be tax and insurance compliant both at the time of expression of interest submission via HDB’s KYC and at the time of loan disbursement..

Loan disbursement can be lump sum or installments, with the final disbursement deadline for the final recipient by 31/12/2029.