Do you need a loan to develop your business but you don’t have collateral?
Group lending is a unique financial service for low-income entrepreneurs. In order to get loan, a group of three or more people should be formed – all entrepreneurs with businesses earning income and in operation for at least three months. Members of the group are united by a guarantee to each other to repay the loan; therefore, the loan is lent without collateral.
The loan is disbursed for:
- Business development;
- Financing household needs (purchase of equipment and machinery, household improvements, medical treatments, education, etc.).
- The loan is issued WITHOUT COLLATERAL under a group guarantee
- Group composition – no less than 3 people
- Loan period – from 3 months to 2 years
- Currency – Kyrgyz som
- Minimum loan amount – 5,000 som
- Maximum loan amount – 250,000 som
Principles of group formation:
- The group should be composed of 3 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 know the business operations of the other group members
- The group is set up based on mutual trust and voluntary participation of all its members
- Relatives – owners of individual businesses with different residence places can be members of the group
The full cost of the loan, which includes the effective interest rate calculated by the formula of the National Bank of the Kyrgyz Republic, and all costs of the client associated with crediting, will be estimated with 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 businesses 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.