Affordable Loans at 5-7-9% program will provide for partial credit guarantees from March – Finance Ministry
The Affordable Loans at 5-7-9% government program from March 1, 2020 will provide for partial credit guarantees that will solve the problem of a lack of collateral from the borrower, the press service of the Ministry of Finance has said.
"By launching the second component of the Affordable Loans at 5-7-9% program, we'll actually unblock the affordable lending tool for entrepreneurs whom banks have not previously paid attention to," the press service said citing the director of the office for international financial cooperation projects administration at the Ministry of Finance, Ruslan Hashev.
The press release says the matter concerns entrepreneurs who decided to create their own business but do not have collateral, reporting and history of their activity.
According to the official, including the additional option in the program will make it available to a wider circle of entrepreneurs.
He added that the existing businesses, if necessary, will also be able to receive a partial credit guarantee, which will cover up to 50% of its loan under the program Affordable Loans at 5-7-9%.