FINCA Bank has signed a partnership agreement with the Guarantee Fund OJSC on providing guarantees for the loans to the clients by the Guarantee Fund OJSC.

The Guarantee Fund OJSC provides assistance to businessmen representing small and medium enterprises by providing additional collateral. The Fund increases the accessibility of loans by becoming security under the guarantee provided by the bank, if the client lacks means for providing collateral.

Following the mechanism of cooperation, after the approval of the loan by the bank in principle, the bank directs those clients, whose solvency is acceptable, but the collateral is insufficient for receiving a loan of the requested size, to the Guarantee Fund OJSC.

The Guarantee Fund OJSC provides guarantees in respect of loans to the amount more than 300, 000 soms and for a period of at least 12 months, and the amount of the guarantee can reach 50% of the collateral. The cost of providing a guarantee for clients is 2% - 2.5% of the amount of the guarantee. SME lending is one of the key directions of activities of the FINCA Bank CJSC. FINCA Bank promotes development of entrepreneurship in Kyrgyzstan via various loan facilities.

The program of the Guarantee Fund OJSC makes provision for providing guarantees in the course of taking loans by clients who have troubles with providing collateral.

How does the mechanism of receiving guarantees work?

The client shall turn to the Bank with an application for a loan, after the Bank considers the application in accordance with the normal procedures and evaluates the possibility of the loan disbursement and its size based on the information of the received information and the provided collateral.

If the Client’s cash flows are sufficient for serving the requested amount, but the cost of the collateral he/she provides is insufficient to receive the necessary amount of money, the Bank suggests the client to contact the Guarantee Fund OJSC.

If the client agrees to contact the Guarantee Fund OJSC, the Bank provides the client’s data to the Fund which makes a decision about the approval/ refusal within 10 days.

The Guarantee Fund OJSC notifies the Bank about the decision it takes. In the case of the positive decision the Bank shall formalize providing a loan to the client.

In the course of providing guarantees by the Fund, the priority directions are production and processing of agricultural products, textile and clothing, production of construction materials, trade, support of the green economy, and support of women’s entrepreneurship.

The terms and conditions, as well as the mechanism of providing guarantees of the Guarantee Fund OJSC can be found at:

http://gf.kg/index.php/ru/predprinimatelyam-ru/mekhanizm-polucheniya-garantii.html

Please find more detailed information about the products and services of the bank at: www.FINCA.kg