Microfinance refers to such financial services as microcredit and micro leasing provided by the Bank in accordance with the loan agreement in the amount not exceeding the limit, set by the current legislation.
Microcredit is a loan, provided by the Bank’s Branch to the borrower for carrying out business activities in the amount not exceeding 1000 minimal wages, set by the current legislation of the Republic of Uzbekistan.
Micro leasing is a service provided by the Bank’s Branch, where Branch, acting upon request of the lessee, purchases the property from the third party and passes it for the lessee’s use at a fixed fee under the terms, set by the lease agreement. Micro leasing is provided in the accordance with leasing legislation of the Republic of Uzbekistan for carrying out business activities in the amount not exceeding 2000 minimal wages.
Branches of Trustbank provide microcredit facilities to the following borrowers:
- Individual entrepreneurs, micro and small enterprises, private farms and dekhkan farms – for carrying out business activities;
- Private individuals, engaged in joint business activities without creation of a legal entity in the form of family entrepreneurship, carried out by spouses on the basis of their common property (including loans to «young families») - for launching businesses and home based labor activities.
- Graduates of vocational colleges – for starting up their own businesses with good use of the gained expertise and skills.
Micro leasing services are provided by the Bank’s Branch to financially stable small business entities with rights of legal entity for carrying our business activities.
Microcredit (micro leasing) is granted in national currency to the borrower, which has opened demand deposit account in the Bank’s Branch, on the basis of principles of safety, profitability, the purpose, repayment and maturity of the loan.
Any changes of terms of lending shall be recorded in the Amendment to loan agreement.
Period of microcredit (micro leasing) depends on the payback period of the project and shall not exceed 3 years (36 months).
Microcredit facilities are provided to borrowers for the following purposes:
- Development and expansion of the self-owned manufacturing (purchase of mini- equipment, primary processing of raw materials etc);
- Development of crop and livestock productions (purchase of mini- equipment, seeds, cattle, poultry, forage and mixed fodders etc);
- Organization of the small-scale production;
- Development of craftsmanship and organization of labor at home;
- Development of the consumer and everyday services rendered to the population;
- Development of the tourist industry;
- Increase of turnover (wholesale and retail trade) and financing of working capital;
- Development of family entrepreneurship;
- Financing of start-up capital;
- Other types of business activities, not prohibited by the current legislation of the Republic of Uzbekistan.
Microcredit facilities are provided to young families for the following purposes:
- Starting up of family entrepreneurship entity without status of a legal entity;
- Financing of start-up capital of micro and small enterprises, private farms and dekhkan farms with status of a legal entity;
- Further growth and development of individual entrepreneurship entities, micro and small enterprises, private farms and dekhkan farms.
Objects of micro leasing:
Inconsumable things, used for business activities, including enterprises, property complexes, buildings, constructions, mini-equipment, vehicles, and other movable and immovable property (except for land and other natural resources, as well as seized property and property, which cannot be freely transferred).
Microcredit facilities are not provided for the following purposes:
- Repayment of the previously borrowed loans or any other loans;
- Production of tobacco products and alcoholic beverages;
- Organization of gambling and lotteries;
- Purchase of personal property not used for the purposes of production;
- Payment of administration costs, including costs related to maintenance of service vehicles, mobile services and other communication services.
Microcredit facilities, financed from the Special Fund of Concessional Lending, are provided to the borrowers in accordance with the requirements of «Regulations on the procedure of financing small business entities, private farms and dekhkan farms from the Special Fund of Concessional Lending», approved by the Resolution # 195 of the Cabinet of Ministers of the Republic of Uzbekistan of May 19, 2000 «On additional measures to encourage the involvement of commercial banks in the development of private entrepreneurship» (Collection of legislation of the government of the Republic of Uzbekistan, 2000, #5, page 25).
Microcredit (micro leasing) interest rates are established on the basis of contractual provisions between the Bank’s Branch and the borrower, based on the purpose of micro-lending, repayment period, solvency of the borrower, quality of collateral and level of credit risk.
Microcredit facilities are provided to young families at the discounted interest rate, not exceeding current refinancing rate, set by the Central Bank of the Republic of Uzbekistan.
Microcredit facilities, financed from the Special Fund of Concessional Lending, including those borrowed by young families and graduates of vocational colleges, are provided at the discounted interest rate in the amount of 50 percent of the current refinancing rate, set by the Central Bank of the Republic of Uzbekistan.
In order to receive microcredit, the borrower shall submit the following documents to the Bank’s Branch:
- Application for microcredit, which must contain information about purpose, amount, collateral and period of loan;
- Accounting and financial reports, which are completed in accordance with the current legislation, with the interpretation of overdue accounts payable and receivable together with reconciliation statements for outstanding balances (for business entities with status of a legal entity);
- Annual tax return form for the last year and bank statement of demand deposit account (for business entities without status of a legal entity);
- Business plan, which must contain monthly analysis of cash flow for the whole period of the loan as well as structure of the portfolio of orders and market of the goods and services produced at the expense of the loan;
- Documents, related to security of the microcredit repayment;
Loan Division of the Bank’s Branch reserves rights to inquire supplementary documents or information in relation to the borrower’s financial position and collateral necessary for analyses of the credit project.
For further details and information please contact:
Name of branch
Contact details of Loans and Investments Department: (+99871) 244-14-53; (+99871) 241-76-21.