Microlending  program «Roadmap employment 2020»

Program purpose: increasing employment, promoting welfare, reduction of unemployment.

Program direction:  stimulate entrepreneurial initiatives and supporting the comprehensive development of villages.

Target group:  citizens of the Republic of Kazakhstan among the unemployed, part-time, low-income, as well as repatriates and other categories of citizens, whose participation is a priority set by the program.

Figures that have priority right to participate in the program:

1)    young people under the age of twenty nine years, including 9, 11 graduates of secondary schools, the organization of technical and vocational education, postsecondary, higher and postgraduate education within three years after completion of training;

2)    orphanages, orphans and children left without parental care, aged eighteen to twenty nine years;

3)    people with disabilities who do not have contraindications to labor activity for health reasons;

4)    women living in rural areas;

5)    persons older than 50 years before reaching retirement age;

6)    pensioners, retired before age generally established;

7)    persons who have been engaged in heavy work, work in hazardous (especially) and (or) dangerous working conditions and are recipients of state special benefits;

8)    persons discharged from the Armed Forces of the Republic of Kazakhstan;

9)    persons released from prison, and (or) compulsory treatment;

10) persons liberated in connection with the liquidation of the employer - legal entity, the termination of the employer - individual or to reduce the number of workers or staff.

Intended use: the organization or expansion of their own businesses in rural areas with medium and high development potential, regardless of their administrative subordination, towns, villages, located on the territory of the city administrative subordination, by organization or extension of own business, and also organization of small-scale commodity production on the basis of personal farm together with the procurement places and sales of agricultural products.  

Priority localities to implement the government support entrepreneurial initiatives are supporting rural settlements.

Micro Loans of up to 500,000 (five hundred thousand) KZT are available for one's own business organization.

Priority directions of microloans up to 500,000 (five hundred thousand) KZT are purchasing poultry, sheep and goats, development of folk artisan, providing rapid payback services.

The maximum loan amount per borrower:

1)    up to 3 000 000 (three million) KZT for organization or enlargement of own business;

2)    up to 5 000 000 (five million) KZT for implementation of projects in support villages;

3)  up to 6 000 000 (six million) KZT – for the organization of small-scale products on the basis of personal farm (provision of micro loans up to 6 mln.KZT for small-scale production will be approbated in 2016 in a pilot mode);

4)    up to 5 000 000 (five million) KZT for borrowers to prepay microloans(more than 5 000 000 (five million) KZT), when they re-applying for a microloan to expand the business.

Interest rate:

1)    up to 500 000 (five hundred thousand) KZT - 4.8% per annum, the annual effective interest rate less than 5% per annum.

2)    more than  500 000 (five hundred thousand) KZT – 6 % per annum, the annual effective interest rate less than 6.7% per annum.

Maximum annual effective interest rate on credit resources for the final borrower is established in consultation with the Regional Commission.

Term of Loan:

1)    up to 500 000 (five hundred thousand) KZT - not more than 36 (thirty six) months;

2)    more than 500 000 (five hundred thousand) KZ:

- not more than 60 (sixty) months only for agricultural direction – meat and milk cattle-breeding

- not more than 54 (fifty four) months for all the directions;

- not more than 36 (thirty six) months for replenishment of turnover means except for the agriculture: meat and milk cattle-breeding, sheep-breeding and horse-breeding.

Frequency of principal repayment: monthly / quarterly / once (1) every six months / once (1) a year, with the possibility of partial / full prepayment for the term loan.

Frequency of remuneration repayment: monthly / quarterly / once (1) every six months, with the possibility of repayment of accrued interest during the loan period for the actually used period.

Grace period for repayment of principal:

1)     up to 500 000 (five hundred thousand) KZT - not more than 6 (six) months;

2)    more than 500 000 (five hundred thousand) KZT - not more than one third of the loan term length.

Grace period for repayment of remuneration:

1)    up to 500 000 (five hundred) KZT - not more than 3 (three) months;

2)    more than 500 000 (five hundred) KZT - not more than 6 (six) months.

Paying off method: annuity 

Collateral: in accordance with the Pledge policy of the Company.

The loan issuance: according to the Rules for the organization and financing of state support for entrepreneurship development of persons involved in active measures to promote employment, approved by Order of the Minister of Health and Social Development of the Republic of Kazakhstan on April 10, 2015 No.221.

Basic requirements for borrowers:

1)    no arrears of taxes and other obligatory payments to the budget at the date of submission / review of the application for credit (this requirement does not apply to individuals);

2)    the absence of arrears to the BWI and other financial institutions for the last reporting date (month of application);

3)    positive credit history (if any credit history);

4)    Company providing the documents necessary and sufficient to verify the intended use of the loan;

5)    receive training, except those that extend the existing business, or previously trained in the basics of entrepreneurship, or persons with supporting documents on the passage of relevant training courses in entrepreneurship for not more than three years prior to microcredit.

Additional requirements for the borrower:

1) When the agricultural projects are implemented by the program participants - beef raising:

- Availability of the necessary infrastructure for cattle;

- Security of food supply;

- Availability of grazing areas, also according to agreements on joint activities / joint use of the property and (or) public land granted to the borrower by the local executive bodies;

- Availability of veterinary and sanitary conditions in the rural district.

2) At the projects implementation by the agricultural program participants - dairy cattle-breeding:

- Availability of the necessary infrastructure for cattle keeping;

- Food supply;

- Availability of grazing areas, also under the agreements on joint activities / joint use of the property and (or) public land granted to the borrower by the local executive bodies;

- Availability of veterinary and sanitary conditions in the rural area;

- Availability of own cattle in the amount not less than 20 (twenty) % of the purchased number of livestock;

3) At the projects implementation by the agricultural program participants - horse breeding:

- Availability of the necessary infrastructure for cattle keeping;

- Availability of grazing areas, also under the agreements on joint activities / joint use of the property and (or) public land granted to the borrower by the local executive bodies;

- Availability of veterinary and sanitary conditions in the rural district.

4) At the projects implementation by the agricultural program participants program – sheep breeding:

- Availability of the necessary infrastructure for cattle keeping;

- Availability of grazing areas, also under the agreements on joint activities / joint use of the property and (or) public land granted to the borrower by the local executive bodies;

- Availability of veterinary and sanitary conditions in the rural district.

5) At the projects implementation by the program participants for the infrastructure construction for pastures irrigation:

- Availability of the necessary infrastructure for cattle keeping;

- Availability of grazing areas with the right of ownership and (or) on the right of temporary, onerous, long-term land use;

- Availability of livestock;

- Availability of veterinary and sanitary conditions in the rural district.

6) Only at purchase of pedigree sires:

- Availability of own breeding stock of cattle at least ten (10) goals to lead the tribal breeding with cattle breeding stock;

- Availability of the necessary infrastructure for the cattle keeping;

- Availability of grazing areas, also under the agreements on joint activities / joint use of the property and (or) public land granted to the borrower by the local executive bodies;

- Availability of veterinary and sanitary conditions in the rural area;

- Providing as collateral guarantees.

Additional requirements for the project and its purpose:

1) At the projects implementation with agricultural direction by the program participants - beef cattle:

Special purpose:

- purchase of breeding stock of cattle and / or breeding bulls;

- purchase and repair of fixed assets, replenishment of flouting assets, with a total of not more than fifteen (15)% of the loan amount.

Project requirements:

- The age of the purchased breeding stock of cattle is from 12 (twelve) to 48 (forty-eight) months (inclusive);

- Obligatory presence of own or purchased at the expense of credit funds breeding bulls aged over 12 (twelve) months, with the mandatory ratio of cattle: one (1) breeding sire per 30 (thirty) heads of breeding stock;

- In case of purchase less than thirty (30) heads of breeding stock of cattle to provide a document confirming there are breeding bulls aged over 12 (twelve) months in a public herd where you plan to pasture the cattle, subject to the acquired breeding stock of cattle with the mandatory ratio of cattle: 1 (one) breeding sire per 30 (thirty) heads of breeding stock or a contract to carry artificial insemination out by a specializing organization (seed of the breeding bull shall be from meat breeds);

- Identification of the existing and purchased cattle, according to the Rules of agricultural animals' identification;

- Acquired and existing breeding bulls have to be of meat breeds and have a pedigree certificate and the veterinary certificate;

- Assignment of the agreement intention for the supply of "young animals" cattle (bull-calves) to the feedlots or procuring centers;

- The financing size for the cattle breeding stock purchased must not exceed 195,000 (one hundred ninety-five thousand) KZT per head of cattle;

- The maximum financing size of purchased breeding bulls with breeding certificate shall not exceed 1200 (one thousand two hundred) KZT per 1 (one) kg of live weight.

2) At the projects implementation by the agricultural program participants - dairy cattle-breeding:

Special purpose:

- The purchase of breeding stock of cattle milk productivity direction and/or breeding bulls;

- The purchase and repair of fixed assets, replenishment of flouting assets, with a total of not more than 15 (fifteen) % of the loan amount.

Project requirements:

- The age of milk cattle head of livestock purchased: 12 (twelve) to 36 (thirty-six) months (inclusive);

- Obligatory presence of own or purchased at the expense of credit resources of breeding bulls - producers aged over 12 (twelve) months, with the mandatory ratio of cattle: 1 (one) breeding bull per 20 (twenty) heads of breeding stock or a contract to carry out artificial insemination by the organization specializing in these activities (seed breeding bull-producer must be dairy breeds);

- In case less than twenty (20) heads of breeding stock of cattle are purchased you are to provide document confirming the existence of a public herd where you plan to pasture the cattle, breeding bulls aged over 12 (twelve) months, subject to the acquired breeding stock of cattle with the mandatory ratio of cattle: 1 (one) breeding sire per twenty (20) heads of breeding stock or a contract for artificial insemination with the organization specializing in this activity (seed of the breeding bull-producer must be of dairy breeds);

 - Identification of the existing and purchased cattle according to the Rules of identification of agricultural animals;

- Acquired and existing breeding bulls are to be of dairy breeds and have a pedigree certificate and the veterinary certificate;

- The financing size of the acquired diary breeding stock of cattle shall not exceed 195,000 (one hundred ninety-five thousand) KZT per live weight;

- The maximum financing amount of purchased breeding bulls with breeding certificate shall not exceed 1200 (one thousand two hundred) KZT per 1 (one) kg of live weight.

3) At the projects implementation by the agricultural program  participants - horse breeding:

Special purpose:

- The acquisition of breeding stock horses and / or breeding stallions;

- The purchase and repair of fixed assets, replenishment of flouting assets, with a total of not more than 15 (fifteen)% of the loan amount.

Project requirements:

- The age of the horse purchased breeding stock from 24 (twenty four) to sixty (60) months (inclusive);

- Obligatory presence of own or purchased at the expense of credit funds breeding stallions older than 24 (twenty four) months, with the number of horses ratio required: 1 (one) stallion per 15 (fifteen) heads of breeding stock;

-in the case of acquisition of less than 15 (fifteen) heads of breeding horses to provide a document confirming the existence in the public herd, where grazing of horses, breeding stallions is planned subject to breeding stock purchased with the optional ratio of horses: 1 (one) tribal stallion per  15 (fifteen) heads of breeding stock;

- Identification of the existing and purchased stock of horses, according to the Rules of identification of agricultural animals;

- Acquired and existing breeding stallions must have a pedigree certificate and the veterinary certificate;

- The financing rate for the horses breeding stock purchase must not exceed 350 000 (three hundred fifty thousand) KZT per one horse head;

- The maximum financing rate for the acquired breeding stallions with breeding certificate must not exceed 450 000 (four hundred and fifty thousand) per head.

4) At the projects implementation by the agricultural program participants - sheep breeding:

Special purpose:

- The acquisition of breeding stock of small cattle and/or breeding rams;

- The purchase and repair of fixed assets, replenishment of flouting assets, with a total of not more than 15 (fifteen)% of the loan amount.

Project requirements:

- The age of the purchased breeding stock from 6 (six) to 36 (thirty-six) months inclusive;

- Obligatory presence of own or purchased at the expense of credit funds breeding rams older than 12 (twelve) months, with the mandatory ratio of small cattle: 1(one) breeding ram per 30 (thirty) heads of breeding stock, or a contract for the performance of the artificial insemination with the organization specializing in these activities (seed should be of the breeding ram);

- In case of acquisition of less than 30 (thirty) heads of breeding stock of small cattle, to provide the document confirming the existence in the public herd where grazing of small cattle, breeding rams is planned subject to the acquired heads of breeding stock with a mandatory ratio of small cattle: 1 (one) breeding ram per 30 (thirty) heads of breeding stock or contract to carry out artificial insemination with the organization specializing in this activity (seed should be of the breeding ram);

- Identification of the existing and acquired small cattle in accordance with the Rules of agricultural animals' identification;

- The financing amount of the purchased breeding small cattle should not exceed 25 000 (twenty five thousand) KZT per one head of small cattle;

- The maximum financing amount for acquired breeding rams with pedigree certificate, shall not exceed 45 000 (forty five thousand) KZT per head.

5) At the projects implementation by the program participants towards the construction of irrigation infrastructure of pastures:

Special purpose:

- Acquisition of fixed assets (construction and repair of wells and other necessary facilities, purchase of transformers, solar panels, machinery).

Project requirements:

- The borrower to provide strict compliance with the requirements stipulated by the legislation of Kazakhstan in the works related to drilling/repair of wells;

- Subsidies received on rehabilitation/construction of wells have to be used to repay principal debt.

6) When you purchase only pedigree sires.

Purpose: purchase of breeding bulls.

Project requirements:

- the sires purchased should be appropriate to the age of 12 (twelve) months to 26 (twenty-six) months prior to the moment of the quarantine at the buyer, with the mandatory ratio of cattle: 1 (one) breeding sire per not more than 30 (thirty ) heads of breeding stock;

- identification of the purchased breeding bulls is conducted according to the rules of agricultural animals' identification;

- the purchased breeding sires should be of meat and dairy breeds and have a pedigree certificate and the veterinary certificate;

- the maximal financing amount for purchased breeding bulls with breeding certificate shall not exceed 1200 (one thousand two hundred) KZT per  1 (one) kg of live weight;

-Provide the borrower is in strict compliance with the requirements stipulated by the Rules of subsidizing for the development of livestock breeding, increasing the productivity and quality of livestock products;

-Getting subsidy on purchase of breeding and selection cattle must be used to repay the principal debt.

Project restriction: not allowed to use the received micro loan for consumer purposes, repayment of previous loans, for the purchase of residential real estate, as well as to carry out activities in the field of trade.

 

Brochure "Lending programs"