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- Untied Loan Guarantees
- Overview
- Basic Principles
- Scope of Cover
- Application and Approval Process
- Fees / Premiums
- Service
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Fees / Premiums
The premium charged for assuming an Untied Loan Guarantee comprises administrative fees and the premium for insurance cover.
Administrative fee
An administrative fee must be paid for the processing of an application for an Untied Loan Guarantee. The service fee for a loan (including interest) with an amount up to EUR 5,000,000.-- is 1‰ and for an amount above EUR 5,000,000.-- it is 0.5‰. However, administrative fees are capped at EUR 30,000.--.
If the application is denied or if for another reason the Untied Loan Guarantee is not assumed, a part of the administrative fee is reimbursed. If the examinations of the profitability of the project and the financing construction have not started yet, the reimbursement amounts to three fourths and after the examinations have started it amounts to one fourth of the administrative fee.
Premium
A premium depending on the type and size of the risk to be covered will be charged for assuming an Untied Loan Guarantee. The premium is risk differentiated and is charged as a percentage of the loan amount to be covered (without interest). The solvency of the debtor or the economical stability of the project, the country risk and the risk duration are crucial criteria for determining the premium rate. Insurance taxes are not applicable.