Microcrediting

Asaka Bank offers the following types of financing  in order to develop small and medium enterprises in Uzbekistan:

Micro - financing

Micro-financing to individual entrepreneurs and farmers which are carrying out the activity without formation of the legal person, are entailed as credits in foreign or national currency in the amount not exceeding of USD 5000,00 (five thousand) at the exchange rate of the Central bank of the Republic of Uzbekistan from the loan issued date.
 Micro-financing to farmers and other small businesses are carrying out the activity without formation of the legal person, are entailed as credits in foreign or national currency in the amount not exceeding of USD 10000,00 (ten thousand) at the exchange rate of the Central bank of the Republic of Uzbekistan from the loan issued date.
Commercial banks provided borrowers with micro-credits on a contractual basis for the term of up to 3 years.
Issue of micro-financing to individual entrepreneurs, farmers, agriculture and other small businesses fulfilling their activity despite the property form is provided to debtors for the following purposes:

• Purchase of mini-equipment:
• Development and broadening of own production;
• Acquiring of livestock, cattle, poultry, forage and mixed fodder, veterinary preparations, chemical means of plants' protection, fertilizers;
• Initial processing of raw materials;
• Purchase of tools, semi-products, accessories;
• Production of art manufacture and applied arts;
• Development of craftsmanship;
• Development of consumer and other services;
• Development of public health services;
• Development of tourist industry;
• Organization of small businesses;
• For other types of undertakings related to the production of consumer goods and providing of services in the territory of Uzbekistan, which are not prohibited by Uzbekistan's legislation.

Micro-financing can not be provided for the following aims:

• repayment prior received loans or any other debts;
• tobacco and alcohol production;
• carrying out of trade-mediatory activity; acquisition of personal property that is not used in production activity.
 
 The Bank is forming a special Fund issuing soft loans including micro-financing to small and medium enterprises. Interest rates on micro-financing under this special fund are established at the rate of not more than 50 % of the of Central Bank's rate of refinancing on the day issue.

The size of interest rate for micro-financing usage is installed according to mutual agreement between debtor and the Bank on the basis of loan agreement, yet not more than officially fixed Central Bank's rate of refinancing.
The order of micro-financings' legalization

In order to receive a loan the debtor must produce the following documents to the Bank:

Legal entities:

• Official Request for micro-financing;
• Business-plan with compulsory indication of money flow analysis;
• Balance sheet form # 1 for the previous year attested by the local (regional) organ of State Taxation authority, financial results statement (form # 2);
• Balance Sheet and Income Statement form #2 for the last date of account;
• Data on the accounts receivable and accounts payable (form #2 a) and acts of reconciliation of debts with overdue payments over 90 days;

Individual entrepreneurs:

• Official request for credit;
• Business-plan;
• Passport, the copy of which is added to credit file.
 
With a view of avoidance of repayment risk the borrower should have security, the basic requirement, its realizability. The borrower has the right to give one of following kinds of security to the bank:
- the mortgage;
- the mortgage of property or securities - a guarantee of bank or the insurance organization;
- the guarantee of the third parties;
- an insurance policy about insurance of repayment of the borrower loan.
 
Crediting under credit lines of non-budget funds

Loans under credit lines of non-budget funds are granted to individual entrepreneurs, micro-firms, small and medium enterprises for financing of project contemplating:

• Development and broadening of farming, acquisition of agricultural equipment, building of farming constructions;
• Initial processing of raw materials;
• Production and processing of agricultural products;
• Organization of compact labor-intensive production;
• Production of folk artistic manufacture and applied arts;
• Service sector development;
• Development of tourism;
• Development of local industry;
• Construction and building materials industry;
• Formation of export oriented and import substituting products, mainly in agriculture.

The conditions of providing credits and privileged periods on them at the expense of non-budget credit lines are indicated in general agreement signed between Head Office of the Bank and non-budget fund, depending on their status:
 
• Loans under credit lines of farming support fund - for 3 years period;
• Loans under employment assistance foundation - up to 3 years.