Government of Gujarat is charging guarantee fees as per the circular dated 9-12-98 and 4-1-99. Guarantee fees is being charged @1% for most of the institutions on whose behalf the guarantees have been provided, except those institutions which are engaged in social services. Gujarat Housing Board, Gujarat Rural Housing Board and Urban Development Authorities are being exempted from paying guarantee fees for the EWS Awaas Schemes.

Administrative departments have been assigned the duty of recovery of the guarantee fees as per the guidelines of Finance Department. The instructions related to the recovery of guarantee fees are also being intimated from time to time to concerned administrative departments. Administrative departments are required to verify the status of guarantees and pursue for the recovery of fees. No new guarantee proposals are entertained unless the due guarantee fees are recovered.