Section 5. Guarantees Commission

(1) The Government shall charge a minimum of 1.00 per cent of the amount of Guaranteed loan as guarantees 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. Note- Default risk” means the probability of default by the borrower on whose behalf the Government Guarantees is given, depending on the amount borrowed, the type of industry and the economic situations.