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The lending program for the development of horse breeding ("Kulan")

Aim of the Program

Ensuring increase in the number of horses of meat and meat and dairy  direction

Target group

Legal entities and persons (PA, FE, IE), LP

Designated purpose

For legal entities and persons:

- The purchase of breeding stock horses and breeding stud horses;

- The purchase and repair of fixed assets, working capital financing.

For LP:

-   Financing of  LP for subsequent financing of participants for the purchase of breeding stock horses and breeding stud horses.

Currency

Tenge

Mode of payment for the purchase of horses and the procedure of providing loan

Loan provided to borrowers of the Corporation/LP in non-cash form.

Mode of payment for the purchase of horses is cash and non-cash:

- Cash mode of payment for the horses used by borrowers of the Corporation/LP in the amount not exceeding the 15 000 000 (fifteen million) tenge. If the total amount of the loan exceeds 15 000 000 (fifteen million) tenge - Loans provided in tranches not exceeding 15 000 000 (fifteen million) tenge.

- Non-cash mode of payment for the horses used at the discretion of a person - the borrower of the Corporation/LP.

For legal entities – borrowers of the Corporation/LP cash mode of payment for horses in settlements with legal entities is only used in the amount not exceeding 1,000 monthly calculation indices established for the financial year.

With funding from the issuance of the second tranche and subsequent tranches made after granting the borrower of the Corporation/LP documents confirming the intended use of funds of the previous tranche, unless otherwise stipulated by the decision of the Credit Committee of the Corporation/LP.

Loan amount

For borrowers, except for LP - from 4 500 000 tenge to 25% net equity of the Corporation;

For LP- from 2 500 000 tenge to 100 000 000 tenge.

Loan type

The loan (excluding LP)/ non-revolving credit line for the purchase of breeding stock horses, purchase and repair of fixed assets, revolving credit line for the purchase of breeding stud horses and working capital financing.

Credit line due date

Up to 120 months

Loan / tranche period

- The purchase of breeding stock horses and breeding stud horses - up to 120 months;

- The purchase and repair of fixed assets- up to 120 months

- Working capital financing – up to 24 months.

Interest rate

-  for borrowers (excluding LP) – 14% annual interest (annual effective rate of return  –14% annual interest)

- for LP  – 9,5% annual interest (for borrowers of LP– no more than 14% annual interest) (annual effective rate of return  – from 9,5% annual interest)

Payment pattern of principal debt

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

Payment pattern of reward

month, quarterly, semi-annually

Gestation period of payment of principal debt

- the purchase of breeding stock horses and breeding stud horses, the purchase and repair of fixed assets – up to 36 from the date of issuance of each tranche;

- working capital financing – up to 12 from the date of issuance of each tranche.

Gestation period of payment of reward

up to 12 from the date of issuance of each tranche

Charge

According to charge policy

Basic requirements for the borrower of the Corporation/LP

- the solvency and financial stability;

- absence of overdue payables on taxes and other

compulsory payments to the budget;

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

- the absence of negative credit history;

- availability of grazing areas, including agreements on joint activities and (or) public lands granted to the borrower by the local executive bodies;

- availability of veterinary and sanitary conditions in the economy (in the presence of horses);

- owning a herd of horses in the amount of not less than 30% of the total number of livestock (own and purchased horses). In the absence of their own horses, providing co-financing by the borrower in the form of cash in the amount of not less than 30% of the value of the acquired number of horses.

Basic requirements for the project

- the age of the purchased horse (mare) from 12 to 60 months, inclusive;

- the size of the financing of the acquired breeding stock horses should not exceed 350 000 (three hundred fifty thousand) tenge for one horse's head;

- availability of own and / or purchased by credit breeding stallions older than 24 months, with a ratio of the number of horses 1 producer on 15 goals mares of reproductive age (less culling and mortality);

- identification of the existing and purchased stock of horses under the Rules of identification of farm animals.

[1] subsidized interest rate under the Rules of subsidizing interest rates on loans, and leasing of technological equipment and agricultural machinery.

1. Checklist for peasants, farmers and entrepreneurs.

2. A list of documents for legal entities.

3. Feasibility Livestock