Partnership microfinance organization

P/n

Lending terms

1

Creditors

Microfinance organization operating in the Republic of Uzbekistan

2

Purpose of the loan

To increase working capital for the purpose of providing microfinance services by a microfinance organization

3

Credit currency

In national currency

4

Credit term

up to 36 months

5

Grace period for principal repayment

up to 6 months

6

High level of credit risk

Based on the cost of the project

7

Annual interest rate (minimum amount)

24 percent

8

Direction of loan funds

Loan funds are transferred to the account of a microfinance organization, and the intended use of the loan is not checked

9

Documents provided

-     credit application;

-     constituent documents, minutes of the meeting on the consent of the founders, containing all the requirements for using the loan;

-     business plan;

-     a copy of the relevant permit to carry out activities;

-     a copy of documents giving the right to carry out activities and use the office building and structure;

-     loan security documents;

- documents on financial covenants.

10

The borrower's own share of the project

Not less than 30%

eleven

Procedure for payment of principal and interest

Annuity or differential

12​

Sources of financing

Due to the repaid portion of previously allocated loans within the framework of family business development programs

13

Security cost

At least 125% of the loan amount for loans allocated in national currency;

14​

Security type

The right to recovery for microfinance services provided by a microfinance organization (80% of the portion secured by the pledge);

Other types of security in accordance with the requirements of the regulations for the formation and documentation of credit files in the system of JSCB "Microcreditbank"

15​

Borrower's solvency

The scoring requirements (stop factor) established by the regulations for the formation and execution of credit cases in the Microcreditbank JSCB system do not apply.

16

Financial covenants and restrictions

(Does not apply to newly created microfinance organizations)

- The share of problem assets in the structure of the loan portfolio should not exceed 5% (problem assets - assets classified as “doubtful” and “unreliable” in accordance with the Regulations on the coordination and regulation of the activities of microfinance organizations and pawnshops (reg No. 3412 of January 11, 2023 .));

- the capital adequacy ratio should not be less than 10 percent;

- the current liquidity ratio should not be less than 100 percent;

- The maximum risk of a microfinance organization in relation to one borrower or a group of related borrowers cannot exceed 25% of the private capital of the microfinance organization;

- The maximum amount of risk per person associated with a microfinance organization cannot exceed 25% of the private capital of the microfinance organization;

- The maximum amount of total investments of a microfinance organization in the authorized capital (authorized capital) and (or) debt securities of other legal entities (except for government securities) cannot exceed 20 percent of the private capital of the microfinance organization;

- must have a positive credit history (no overdue payments on loans for a period of more than 90 days) for previously issued loans.