Do you need a loan to develop your agricultural business but you don’t have collateral?

Group lending is a unique financial service model for low-income entrepreneurs. In order to get a loan, a group of three or more people should be formed – entrepreneurs with businesses in operation for at least three months. Members of the group are united by a mutual guarantee for loan repayment; therefore, the loan is provided without collateral.

Loan is issued for:

  • agriculture development;
  • financing household needs: purchase of equipment, machinery leasing, recruiting of seasonal workers, purchase of the livestock, housing improving, medical treatment, education, etc.

Loan terms:

  • The loan is issued WITHOUT COLLATERAL under a group warranty.
  • Group composition – not less three people
  • Period of crediting – from 3 months to 2 years
  • Currency of loan – Kyrgyz som, USD
  • Minimum loan amount – 5 000 som
  • Maximum loan amount – 250 000 som
  • Grace period – up to 5 months.

Principles of group formation:

  • The group should be composed of three or more people – full legal-age citizens of the Kyrgyz Republic
  • All members of the group should have valid passports
  • Entrepreneurs in the group should know each other and the business of the other group members
  • Group is set up based on mutual trust and voluntary participation of all its members
  • Relatives – owners of individual business with different residence places can be members of the group

The full cost of the loan, which includes the effective interest rate, calculated by formula of the National Bank of the Kyrgyz Republic, and all costs of the client associated with crediting, is estimated during review of the client’s loan application.

CJSC “FINCA Bank” is a partner of the OJSC “The guarantee fund”. The OJSC “The guarantee fund” provides assistance to businessmen representing small and medium enterprises by means of providing additional collateral. The Fund provides guarantees for the loans to the amount more than 300, 000 soms, and the amount of the guarantee may reach the level of 50% of the collateral.