“Fund for Financial Support of Agriculture” JSC, the part of national holding “KazAgro”, an authorized microcredit organization has started to accepti applications for the financing of microfinance institutions in the framework of the Unified business support and development “Business Road Map 2020”.
One of the measures of financial support is microcredit for small businesses. For this purpose, the national budget allocated 2 billion 647 million tenge in 2016. In 2017 and 2018, it is planned to allot the same volume, KazAgro reported.
The aim is to ensure the sustainable and balanced growth of regional businesses, the maintenance of existing and creation of new permanent jobs.
Microlending will be carried out in all regions of Kazakhstan. Funds allocated by the MFI will be directed to micro-crediting of small businesses operating in single-industry towns, small towns and rural areas.
“Loans are issued to finance entrepreneurs, implementing own projects. Intended purpose of microcredit for final borrowers are an organization or expand their own business and working capital without restrictions”, – said Deputy Chairman of the Board of “Fund for Financial Support of Agriculture” JSC Almas Taubaev.
The maximum loan amount per borrower – 350 million tenge. The interest rate for MFIs – 4% per annum, the annual effective interest rate – no more than 4.5%; for final borrowers – the nominal rate of no more than 12% per annum. Term loan to MFIs and microcredit for final borrowers – no more than 54 months; loan for working capital – no more than 36 months.
The Foundation is involved in a financial operator of microcredit within the CST-2020 from the previous
Overall, since 2006, “Fund for Financial Support of Agriculture” JSC directed 10 billion 226 million tenge for financial support, issued about 23 thousand micro-credits to final borrowers.