Amendment status not verified — confirm the current text below against the official source.
(1) The Government shall charge a minimum of 0.75 per cent per annum as guarantee commission, which shall not be waived under any circumstances. (2) Depending on the default risk of any project, the Government may, by notification in the Gazette, specify commission at an enhanced rate. Explanation.-- For the purpose of this section 'default risk' means the probability of default by the borrower on whose behalf the Government guarantee is given, depending on the amount borrowed, the type of industry and the economic situations. (3) The guarantee given shall not be extended on the expiry of the guarantee period unless the borrower had paid in full the guarantee commission due to the government.