Financing via credit societies (CS)

 

The lending program of agricultural production and industrial processing of agricultural products, through the system of credit societies

The lending program of non-agricultural businesses through the credit societies

 Financing of credit societies (CS)

Characteristics of credit terms

Credit terms

Aim of the Program

Ensuring access to credit resources (on concessional terms) for wide layers of small and medium ACP, situated close to the location of agricultural production

Target group

Acting and new CS

Designated purpose

- financing CS for further financing of fixed asset acquisition (including those for  modernization of the object), construction and installation work (construction of new buildings, reconstruction) and working capital financing;

 - refinancing credits;

Currency

Tenge

Loan amount

From 1 000 000 tenge to 25% of the net equity of the Corporation;

Loan type

credit line

Loan due date

Up to 108 months

Tranche period

Set depending on the term of the tranche borrower CS, with:

-for the purchase of fixed assets and construction activities - up to 108 months;

- for working capital, including the CDF, except dropping of perennial grass - up to 24 months;

- working capital for dropping of perennial grass  asses - up to 60 months.

Interest rate of SB

4% annual interest (annual effective rate of return for SB  – 4% annual interest)

Interest rate from other sources

9,5% annual interest (annual effective rate of return  – 9,5% annual interest)

Payment pattern of principal debt and reward

every month, quarterly, semi-annually, annually, with possibility of partial/full advanced repayment

Gestation period of payment of principal debt

- working capital financing, , except water distributing point, dropping of perennial grass  – up to 12 months as from receipt of tranche;

- working capital financing, including water distributing point – up to 18 months as from receipt of tranche;

- working capital financing, including dropping of perennial grass  – up to 24 months;

- Fixed asset acquisition  and construction and installation work – no longer than 24 months.

Charge

According to charge policy

Basic requirements for the CS

-      At least 20 members of agricultural commodity producers, officially registrated;

-    absence of overdue payables on taxes and other compulsory payments to the budget;

absence of overdue debt to the regulated banks, other financial institutions;

-      at least CS authorized capital 3 000 000 (three million) tenge;

-      adoption by the CS joint and several liability for the obligations of the Corporation CS enshrined in the founding documents of the CS.

Special conditions of crediting of agricultural production and industrial processing of agricultural products, through the system of credit unions

• maturity date of the credit partnership of principal and interest shall be not later than three (3) banking days from the date of repayment by the borrower CS regular payment of principal and interest in accordance with its schedule, as well as for partial / full early repayment of credit.

Information for the members of CS:

List of documents for entry into the CS and the opening of a credit line.

List of documents for opening a credit line for the LE, PA, IE

Information for credit societies:

List of documents for entry of new participants and opening a credit line.

 

Submit loan application in on-line mode

 

Methods of rating credit partnership