Micro-credit lending program for microfinance institutions for further agricultural microcredit for spring field and harvest works
Target group: microcredit (microfinance) organizations.
Purpose: lending to MCO (MFOs) for further microcredit of agricultural producers for spring-field and harvest works.
Maximum loan amount:
- per Borrower – 1 000 000 000 (one billion) KZT;
- per one end borrower – 8 thousand-multiple rate of the monthly calculated index established by the Act of the Republic of Kazakhstan on national budget for the year in which a positive decision on the project financing is made.
Financial Instruments: For the Borrower, the end Borrower - a loan, revolving / non-revolving credit line;
1) on loans issued from its own resources:
· for МСО (MFO)- 4% per annum, the annual effective interest rate is not more than 4.4% per annum;
· for final borrowers - not more than 13% per annum.
2) for loans issued from the funds borrowed from the national budget:
for Borrower - 4% per annum, the annual effective interest rate - not more than 4.4%;
for final borrower - not more than 9% per annum.
The term of the credit line: not more than 12 (twelve) months.
Term of Loan / tranche:
• For Borrower - not more than 12 (twelve) months;
• For final borrower - not more than 10 (ten) months.
The procedure for loan / tranche issuing:
The loan, tranche under the credit line is issued on the basis of the borrower's application for funding and the registry of potential end-borrowers in the form according to Appendix no. 1 to the Terms and Conditions.
The means of the second and the subsequent tranches are issued to the Borrower upon the request, registry, mentioned in this line as well as documents confirming 100% of the permitted use of the previous tranche, the extraction provision from a special bank account of the Borrower that confirm the transfer of monetary funds to the End borrowers or copies of original documents confirming the fact of lending to the end borrowers.
Term of loan/tranche development: not more than 45 (forty five) calendar days from the date of the loan/tranche receipt.
Frequency of principal debt repayment: at the end of the term, with the possibility of partial/full prepayment during the loan term.
Frequency of fees redemption: at the end of the term, with the possibility of partial/full prepayment during the loan term.
Collateral: in accordance with the Company's Pledge policy.
Basic requirements for borrowers and the basic conditions for microcredit granting to final borrowers:
1. solvency and financial stability;
2. absence of arrears on taxes and other obligatory payments to the budget at the date of submission/review of applications for loans;
3. the absence of arrears before the second-tier banks and other financial institutions in the last reporting date (current month of application);
- positive credit history (if any credit history);
- the presence of existing automated accounting system of the loan portfolio;
- availability of a special separate bank KZT account in the second-tier banks for movement control of the monetary funds under the issues loan/tranche;
- giving the Company the documents necessary and sufficient for monitoring of the end borrowers with the application of end borrowers' consents for the Information provision by the Borrower to the Company;
8.micro-credits to final borrowers are provided for the purposes according to the articles of expenses specified in Appendix No.2 to the Terms and Conditions;
9.The microcredit issuance to the end borrowers should be collateralized in aggregate not less than 100% of the micro-credit amount.