Since April 2002, CJSC "BTA Bank" has become one of the first bank-partners of Micro and Small Finance Facility Program (MSFF) in Kyrgyz Republic, which has actively started to give loans to small and medium businesses. In September 2006 MSFF EBRD has transferred full authority and responsibility to CJSC "BTA Bank". Bank has successfully used the technical assistance provided by EBRD and financed by United States Agency for International Development (USAID) and European Union (TACIS). Main goal of the technical assistance was to create conditions for stable and profitable levels of credits for small and medium businesses at CJSC "BTA Bank".
Also, starting from 2006 CJSC "BTA Bank" started to work with agro-credits.
General credit conditions
Amount: from $500 to $1,000,000 (or equivalent in KGS).
Credit period: from 3 to 60 months.
Interest rate: for loans in USD - 11-22% per year; for loans in KGS - 15-26% per year.
Repayment: monthly, annuity payments (part of the main amount and interest), possible: flexible schedule, discount period for repayment of the main debt.
- Loans without bureaucratic delay
- Speed and confidentiality - 2-5 days issuance
- Constant access to bank financing
Usual amount of express credit does not exceed $5000 (or 250,000 KGS). Small amounts are very important for small businesses and we know they come to rescue only when given on time. In order to simplify procedures of processing small amounts, we developed a particular type of credit - "Express credit", main features of which are payments in cash and shortest period of issuance.
Loans can be obtained by enterprises and entrepreneurs without organizing a legal entity, operating in spheres of manufacturing, trade and service. Usually, loan is given for a period of not more than 18 months and interest rate is determined by loans committee and fixed for the whole period.
Borrower's personal property, manufacturing or trading equipment, vehicles, goods in turnover and bail-piece can serve as a guarantee. Any property that can be formalized into security is accepted as a guarantee. If property documents are in place, credit expert evaluates the property on the location. Close relative or third party signature is not required but possible. 100% coverage of the loan by a guarantee might not be required, if provided with high quality guarantee.
Everything from $5,000 to $10,000 (or equivalent amount in KGS) we call microcredit. They are used to resolve various issues: stocking goods, replenishment of raw materials, purchase of trading or manufacturing equipment, working space renovation, purchase of real estate and vehicles. If borrower is an entrepreneur without a legal entity, in most cases, he or she can receive a loan in cash through cashier without opening an account and paying for related expenses.
Repayment schedule provides annuity payments (once a month). Such a system allows an entrepreneur to keep these payments in budget as a "regular" expense item. If necessary, other repayment rates (twice a month), seasonal income bound repayments (for seasonal businesses) or repayment delays (up to 6 months) can be applied.
Interest rates vary depending on borrower's credit history, business kind, loan amount and period as well as market interest rates (from 17% per year in USD, from 20% per year in KGS).
Everything from $10,000 to $1,000,000 (or equivalent amount in KGS) is small credit. Borrowers are entrepreneurs as well as manufacturing, service and trading enterprises. Small credits can be used for stocking goods, working space renovation, supplementing or renovating equipment, purchase of real estate, etc.
Repayment is usually done through monthly payments in annuity payments. Flexible schedule and up to 6 months main debt repayment delay can be applied.
Just like with microcredit, flexible approach to guarantees is provided. Property belonging to an entrepreneur, enterprise, directors of enterprises or third parties can serve as a guarantee. It is possible to register assets purchased for loan money as a security.
Interest rates vary depending on borrower's credit history, business kind, loan amount and terms as well as market interest rates (from 11% per year in USD and from 15% per year in KGS).
Agrocredit can be obtained by an entrepreneur, farmer, farmhouse or other legal entity, operating in the following spheres:
- Livestock sector: meat, fell, eggs, diary products
- Crop production
Agrocredit can be granted for: purchase of livestock, seeds, equipment, construction for business consolidation/expansion, payment for labor, stocking goods after expenses unrelated to business, etc.
Interest rate is determined depending on:
- Payment schedule (flexible schedule/equal portions)
- Demand and situation in financial market
Credit period is up to 3 years, 5 years period considered, depending on credit goals, business sphere and structure.
Maximum amount of an agrocredit is $1,000,000 or equivalent amount in KGS.
Repayment schedule: monthly payments in annuity payments: part of the main debt and interest. Considering seasonality of a business, flexible schedule and up to 6 months repayment delay may be applied.
Security: personal property, livestock, equipment, harvest, future security, real estate, bail-pieces (combination of bails related to agriculture with other sources of income, socio-psychological bail).
Our Bank offers entrepreneurs such a product like credit lines for convenience in working with credit resources. By implementing given product we aimed at the following:
- Enhancing speed and quality of service
- Reducing expenses for security registration
- Providing constant access to credit resources
- Individual approach to a client
- Reduce credit processing time
- Long term cooperation between a client and the bank
In order to receive a credit line, potential borrower needs to have a stable business operating not less than 3 months (without breaks) prior to application. Following sectors of economy are financed: trade, services, manufacturing and agriculture. Credit lines can be granted in USD and KGS.
Interest rate is determined by period and goals of each tranche similar to cases with micro, small and agrocredit. It is possible to negotiate corridor of interest rate.
Credit period depends on structure, business sphere and goals for each tranche. Maximum period of credit line must not exceed 60 months. Client has always a possibility to repay one of the tranche fully. Credit line limit can be expanded if financial analysis indicates borrower's high capacity.
Guarantee amount should be minimum 120% of credit line amount. Real estate and other property like vehicles, future security, bail-piece, etc. can serve as a security property.
In order to become a good entrepreneur, one must be able to choose reliable and beneficial partners and aspire to use all resources provided by service market in his or her business interests. Bank loans are modern and convenient service available for each entrepreneur; it is a significant support of Your Business.