ISHONCH krediti

Loan purposes:

• unrestricted-use financing;
• working capital financing;
• acquisition of fixed assets;
• acquisition of non-residential buildings and structures;
• acquisition of passenger vehicles, electric vehicles, commercial and passenger transport, and special-purpose machinery.

Unrestricted-use financing may not be used to repay loans, interest or fees; provide or repay financial assistance; settle third-party debts; purchase securities or equity interests in companies; make transfers to secondary accounts; or make payments under surety obligations.

Loan amount:

For legal entities:

• unrestricted-use financing — from the equivalent of UZS 50 million to UZS 12 billion; up to UZS 28 billion subject to a favourable assessment by the Micro and Small Business Department;
• working capital financing or financing for the acquisition of fixed assets or non-residential property — from the equivalent of UZS 50 million to UZS 28 billion;
• financing for the acquisition of vehicles and special-purpose machinery — from the equivalent of UZS 50 million to UZS 6 billion.

For entrepreneurs operating without forming a legal entity — up to UZS 1 billion.

Loan term and grace period:

• unrestricted-use financing — up to 84 months, with a grace period of up to 6 months;
• working capital financing — up to 36 months, with a grace period of up to 6 months;
• working capital financing under a master agreement — up to 60 months, with each individual loan granted for up to 36 months;
• acquisition of fixed assets — up to 84 months, with a grace period of up to 12 months;
• acquisition of non-residential buildings and structures — up to 84 months, with a grace period of up to 6 months;
• acquisition of vehicles and special-purpose machinery — up to 60 months, with a grace period of up to 6 months.

Hotels and preschool educational institutions may receive unrestricted-use financing and financing for the acquisition of fixed assets for a term of up to 120 months. Where financing is provided from funds raised by the Bank, the grace period is determined by the terms of the relevant funding source.

Loan currency:

• Uzbek soums;
• US dollars, euros, Chinese yuan and other foreign currencies.

Foreign-currency loans are not available to entrepreneurs operating without forming a legal entity.

Interest rate:

• financed from the Bank’s own funds — from 21% per annum in UZS and from 12% per annum in foreign currency;
• financed from funds raised by the Bank — the cost of funding plus a Bank margin of at least 4% for loans in UZS and at least 3% for loans in foreign currency;
• under special terms — from 16% per annum in UZS and from 8% per annum in foreign currency.

Special rates apply pursuant to a decision of the district or city task force responsible for creating sustainable employment and increasing household income and/or in response to requests received during regional visits by members of the Bank’s Management Board.

Disbursement and repayment:

• repayment schedule — annuity or declining balance;
• principal is repaid monthly after the end of the grace period, while interest is paid monthly;
• unrestricted-use financing may be disbursed in cash, credited to a bank card or transferred to a supplier, contractor or seller;
• purpose-specific financing is transferred directly to a supplier, contractor or seller.

Where financing is provided from funds raised by the Bank, the repayment procedure is determined by the terms of the relevant funding source.

Loan security:

Tangible collateral with a value of at least 125% of the loan amount is generally required. For related parties, the minimum collateral coverage is 130%.

Acceptable forms of security include:

• real estate;
• motor vehicles no more than 5 years old;
• special-purpose machinery no more than 2 years old;
• vehicles and special-purpose machinery acquired with the loan proceeds;
• cash collateral;
• surety provided by a legal entity;
• credit default risk insurance;
• surety provided by National Business Guarantee Company JSC.

Special terms apply in the following cases:

• tangible collateral is not required for special-purpose loans of up to UZS 5 billion;
• the Business Guarantee Company may provide a surety covering up to 50% of the loan amount;
• subject to a favourable assessment by the Micro and Small Business Department, tangible collateral may cover at least 80% of the loan amount, while other forms of security may cover no more than 45%;
• vehicles and special-purpose machinery acquired with the loan proceeds may be accepted as collateral.

Down payment:

• Non-residential buildings and structures: at least 30% of the purchase price. If additional tangible collateral increases the total collateral coverage to at least 125% of the loan amount, the down payment may be reduced to 10%.
• Vehicles and special-purpose machinery: at least 20% of the purchase price. If additional tangible collateral increases the total collateral coverage to at least 125% of the loan amount, the down payment may be reduced or waived.

Vehicles and special-purpose machinery must be purchased on the primary market, must not be more than 2 years old and must not have been previously used. The year of manufacture is counted as the first year.

Up to UZS 5 billion without tangible collateral:

This financing may be provided against alternative forms of security for projects aimed at reducing poverty and increasing household income.

Key requirements:

• a decision of the relevant district or city task force;
• a letter from the district or city khokim confirming their consent to provide a surety;
• the customer must have previously held at least one loan for a minimum of 6 months and repaid it in full;
• the company’s net assets must exceed the loan amount by more than two times;
• a favourable assessment by the Micro and Small Business Department;
• engagement of families included in the Social Registry in cooperative activities, calculated at UZS 50 million per family, or creation of at least one job for an unemployed person for every full or partial UZS 200 million of financing.

The relevant obligation must be fulfilled within 3 months of loan disbursement. If the required number of jobs is not created, the interest rate on the UZS-denominated loan will be set at 24% per annum from the date the breach is identified.

Additional surety:

In addition to the primary security, a surety covering 125% of the loan amount must be provided by a founder holding an ownership interest of at least 50%, or by several founders whose combined ownership interest is at least 50%. An individual entrepreneur must provide a personal surety in their capacity as an individual. This requirement does not apply where the founder is a foreign national or foreign company, a government authority, a publicly funded institution or a joint-stock company.