Credit Guarantee Act 2012

Payment of charge to Minister by participating borrower.

8.— (1) Subject to subsection (3), a participating borrower shall, not later than 6 months after the entry by him or her into the qualifying loan agreement concerned, pay to the Minister an amount (in this section referred to as the “initial amount”) equal to 2 per cent of the principal of the money lent under that agreement.

(2) Subject to subsection (3), a participating borrower shall, not later than 4 weeks after each anniversary after the entry by him or her into the qualifying loan agreement concerned, pay to the Minister an amount (in this section referred to as the “annual amount”) equal to 2 per cent of the principal of the money lent under that agreement.

(3) Where provision is made in a credit guarantee scheme for payment of the initial premium or the annual premium by instalment, a participating borrower may pay the initial premium or the annual premium by instalment at such intervals as are specified in the scheme.