- A credit guarantee is not a waiver of the borrower’s debt.
- Check eligibility, interest, fees, collateral and repayment terms separately.
- Confirm the latest DCGF and bank conditions before applying.
The basic idea
Nepal’s Deposit & Credit Guarantee Fund operates an SME credit-guarantee scheme for qualifying loans issued by member banks and financial institutions. Official terms define loan limits, premiums and compensation conditions.
What it does not mean for a borrower
A “guaranteed” loan does not mean the borrower can stop making repayments, that every application must be approved, or that business risk disappears. The guarantee primarily supports the lender’s risk-management framework under specified conditions.
What a business owner should check
- Whether the loan product qualifies under the scheme
- The bank’s normal eligibility and credit assessment
- Interest, fees, collateral and repayment schedule
- How any guarantee-related premium or cost applies
Why official terms matter
Limits and conditions can change, so confirm the latest DCGF and bank information before making a borrowing decision.
When seeking business credit, focus on total borrowing cost and repayment capacity rather than assuming the word “guarantee” removes the borrower’s obligations.
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