PrivatBank cuts interest rate on loans for SMEs by 1-2 p.p.
Since May 25, state-owned PrivatBank (Kyiv) has reduced basic interest rates for all programs for financing entrepreneurs and small businesses by 1-2 percentage points (p.p.) to facilitate recovery from lockdown for entrepreneurs, the bank's press service said on Monday, May 25.
"All our customers of small and medium-sized businesses will be able to receive financing at reduced rates from May 25, and for customers who already use the bank's loan programs, the interest rate will be recalculated downward automatically," the bank's press service said, citing chairman of the board Petr Krumphanzl.
The bank said in the statement that the interest rate under the KUB (Country of Successful Business) program on security was cut by 1 p.p., to 17% per annum, while under the KUB program from one to six months of use it was cut by 2 p.p., to 1.4%, under the KUB program with use up to a year it was cut by 0.2 p.p., to 1.2% with a subsequent increase from January 2021 to 1.6% and 1.4%, respectively.
Commission of the amount of the maximum debt on the Entrepreneurial and the Credit Line on the Account credit lines by the end of 2020 was reduced by 0.2 p.p. each with subsequent recovery from 2021, to 0.5%.
In addition, rates on business mortgage were cut by 1 p.p. (to 15% per annum), on loans secured by deposits (to 13% per annum) and on investment credits (to 15% per annum).
The rates were cut by 1 p.p., to 15% per annum on the Agroseason credit line and on loans for the purchase of agricultural equipment under state programs
On a renewable credit line the rates were cut by 1 p.p. (to 15% per annum) for 90 days, for 180 days (to 16% per annum) and for 270 days (to 17% per annum).
The reduction in rates will not be applied to customers who have been involved in debt restructuring or who have or will have overdue indebtedness.