Loan product “Direct Financing”
The direct financing product involves financing business entities in order to diversify and stimulate the country's economy, create jobs and equalize the economic development of the regions. This type of lending is one of the priority areas of the Bank's lending activities. The selection and analysis of projects with their subsequent financing will be carried out in accordance with the Bank's strategy, priority sectors of the economy and the Bank's internal regulations.
Options
Own contribution
The project owner must make a personal contribution of at least 10% of the project cost; in the case of project financing, the personal contribution must be at least 20% (the personal contribution may be in the form of cash, property (including intellectual property), land, fixed assets, etc.).
Provision for financing
Financing must be secured by a pledge, guarantee and other methods of ensuring the fulfillment of obligations provided for by the legislation of the Kyrgyz Republic.
Valuation of collateral
• The valuation of the collateral is carried out by an independent appraisal company included by the Bank in the Register of Bank Partners (list of bona fide appraisers), except in cases specified in the Lending Regulations and the Bank's Instructions for Working with Collateral.
• The independent appraisal company's report, submitted for consideration to the Credit Committee, must be prepared no earlier than six (6) months prior to the date of the Credit Committee meeting.
• The Bank's management (Board of Directors, Management Board) reserves the right to determine (establish) the final valuation of the collateral.
• The independent appraisal company's report, submitted for consideration to the Credit Committee, must be prepared no earlier than six (6) months prior to the date of the Credit Committee meeting.
• The Bank's management (Board of Directors, Management Board) reserves the right to determine (establish) the final valuation of the collateral.
Repayment schedule
· By interest – on a monthly/quarterly basis;
· For the principal debt - according to the cash flows of the borrower's business, but not less than 2 times a year;
· For the principal debt - according to the cash flows of the borrower's business, but not less than 2 times a year;
Grace period
Upon repayment of the principal debt – for the period of the investment phase.
Insurance of the collateral
Insurance of collateral is determined by the Bank's authorized body for each individual project. Insurance is provided by companies included in the Bank's Partner Registry (a list of reputable insurance companies), at the expense of the Borrower/Pledgor.
Interest rate for misuse of credit funds
In case of misuse of credit funds, the interest rate increases to 20% per annum. The Bank reserves the right to submit information about the misuse of credit funds by the client to the Credit Information Bureau.
Special conditions
· All costs associated with the loan and registration of collateral are paid by the Borrower;
· The borrower is responsible for the safety and proper use of the collateral.
· The borrower is responsible for the safety and proper use of the collateral.
Restrictions
The bank does not provide:
loan without security
loan without security
*The Bank reserves the right to amend the terms of this Program.