The Regulations on the procedure for issuing microcredit loans by commercial banks to graduates of professional colleges was approved.
The offer looks tempting, but each graduate has to reflect what kind of business he can open with the support of this micro-credit from the bank.
The graduates are eligible for the loans for three years after graduation. Microloans are issued in the national currency. A prerequisite of the loan is to have registration as an individual entrepreneur or ownership of 50 % shares in the authorized capital of a legal entity
The loans are issued with a non-renewable term of return. Loan size for legal entities can be up to 300 times the minimum wage, and for entrepreneurs - up to 200 times the minimum wage.
Depending on the self-sufficiency, the loan may be issued for different terms . Up to 12 months - for the formation of the initial capital and the development of a feasibility study of the investment project. Up to 2 years - for working capital and the acquisition of equipment for the establishment of cultivation and processing of agricultural products. For more than 3 years - to finance investment projects.
The interest rate for the use of micro-credits is set at a level not exceeding the refinancing rate of the Central Bank. In the case of allocation of micro-credits from the fund of concessional lending, the bank's interest rate is 50 % of the refinancing rate of the Central Bank. The interest rate may vary depending on changes in the CP of the Central Bank.
It is important that in case of increasing the refinancing rate of the Central Bank, the interest rate, specified in the contract, remains unchanged. Micro-credits are not issued to borrowers operating at a loss, having illiquid balance and to borrowers who didn’t return microcredit previously given to them.
Working with the Bank begins with filing out the application. It is necessary to provide a business plan showing the forecast of cash flows to the account of the borrower; the borrower's balance sheet for the last reporting period, acts of reconciliations of debt for more than 90 days, the report on financial results ( in addition to the newly established legal entities and individual entrepreneurs) a notarized copy of the diploma of a professional college degree, as well as one of the types of collateral.
The application is considered by the bank and thedecision is made within three working days.
During the period of the use of microcredit, bank constantly monitors the activity of the borrower and provides the borrower with guidance to ensure the fulfillment of the contract conditions.