Under this guarantee, the Lender decides whether or not to guarantee loans to their borrowers based on predetermined guarantee criteria and a guarantee product policy contractually agreed with PASS. To access this product, Lenders pay Application Fee they will use in a given 12 months on a quarterly basis as invoiced by PASS. Further, based on utilization, Lenders pay a risk sharing fees as contractually agreed with PASS, usually on quarterly basis.  

PASS agrees with each Bank the range of values the loans can fall within and will depend on experience and track record in agribusiness sector, average of loan sizes, quality of loan book etc. 

The purposes that the loans can be used for will be as guided in Credit Guarantee Agreement. The guarantee will under no circumstance cover more than 50% of the principal outstanding and will not cover fees, interest or penalties accrued by the borrower. The guarantee will under no circumstances cover restructured or refinanced loans without prior consent of PASS.


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