Loans for microfinance and leasing organizations

Form of Lending:

1) By one-time conclusion of a loan agreement (LA), under which:

• without opening a credit line (single disbursement / tranche withdrawals);

• with the opening of a revolving credit line;

2) By opening a Framework Credit Line (FCL), within which two or more Individual Loan Agreements (ILA) may be concluded, under which:

• without opening a credit line (single disbursement);

Loan terms:

• Maximum term of FCL: up to 36 months.

• Maximum term under LA/ILA: up to 36 months.

Grace period for repayment of principal debt: up to 3 months.

Loan purpose

• For microfinance organizations (MFO): providing loans to further finance MFO clients, as well as acquiring assets for their own needs.

• For leasing organizations (LO): providing loans to acquire leasing/rental objects, as well as acquiring assets for their own needs.

Method of Lending:

• For microfinance organizations (MFO): credit funds are credited to the borrower’s demand deposit account for further financing of MFO clients and transferred cashlessly to the current accounts of suppliers from the MFO’s loan account according to the provided purchase agreements, including import contracts.

• For leasing organizations (LO): cashless transfer of funds to the current accounts of suppliers of leasing/rental objects from the LO’s loan account according to the provided purchase agreements, including import contracts.

Loan Currency:

• National currency of the Republic of Uzbekistan — Uzbek som.

• Foreign currency.

Interest rate: 

• From 26% – for loans in the national currency

• From 12.99% for loans in foreign currency.

Minimum Loan Amount: not established.

Maximum loan amount: not set, calculated individually based on the customer's creditworthiness, within the economic standards of the Central Bank of the Republic of Uzbekistan.

Loan repayment: monthly, annuity or differentiated payments

Acceptable types of collateral:

• Pledge of funds in freely convertible and national currency held in accounts opened with JSC «InFinBank»;

• Guarantees from banks and insurance companies;

• Pledge of movable and immovable property;

• Pledge of property rights (claims);

• Pledge of government securities, Central Bank of the Republic of Uzbekistan securities, other securities not prohibited by current legislation, and shares in charter funds;

• From third parties with verified solvency and financial reliability;

• Insurance policies of financially stable insurance companies;

• Other types of collateral not prohibited by current legislation.

Mandatory Requirements for the Borrower and its Activities:

• The borrower must have been registered as a business entity for at least 12 months.

• The borrower must have a demand deposit account (primary or secondary) at JSC “InFinBank.”

• No negative credit history.

• Sufficiency of the Borrower’s current and projected cash flows for timely loan servicing;

• Borrower’s balance sheet is liquid and operations are not loss-making;

• Availability of the relevant permits and licenses;

• The Borrower (for Microfinance Organizations) must comply with the provisions of the Regulation “On Coordination and Regulation of Microfinance Organizations and Pawnshops” (No. 3412 dated 11.01.2023) regarding the prudential standards of the Central Bank of the Republic of Uzbekistan;

• The share of non-performing loans (NPL) in the Borrower’s credit (leasing) portfolio must not exceed 5%;

• Capital adequacy ratio for MFOs (for leasing organizations – autonomy ratio) must be at least 25%, taking into account the newly received loan;

• Other requirements for potential Borrowers according to the Bank’s local regulations.

Procedure for opening financing: Financing is opened after the Borrower provides collateral to the Bank, executed in accordance with the procedures established by legislation and the Bank’s internal regulations, and after insurance of the collateral object.

List of Documents Provided by the Borrower:

• Loan application with a description of all loan terms and collateral requirements;

• Borrower’s certificate of state registration;

• Copy of the charter and founding documents of the enterprise, including all amendments;

• Copy of documents confirming the authority of the person to sign the loan agreement on behalf of the borrower, if the person acts as the borrower’s representative, including signature specimens;

• Feasibility study (technical and economic justification) or business plan for the project;

• Resolution of the borrower’s authorized body on attracting the required loan amount under the relevant terms and providing collateral;

• If the Borrower has accounts in other banks, certificates from servicing banks confirming the absence/presence of arrears on loans, leasing, letters of credit, and other obligations, as well as information on turnovers for the past 12 months in the form of a bank letter with an electronic breakdown;

• Contracts that will be paid under the requested loan, including legal opinions if necessary;

• Documents for the provided collateral in accordance with the “Procedure for accepting collateral for loan operations carried out by corporate lending divisions of JSC «InFinBank»” (PSC-194).

Specifically for microfinance organizations:

Financial and other reporting for the last financial year, as well as as of the first day of the current month, in the form approved by the Central Bank of the Republic of Uzbekistan (CB RUz), according to Regulation No. 3412 dated 11.01.2023, in particular: Balance sheet reporting (Appendix No. 4), Statement of financial results (Appendix No. 5), Changes in capital (Appendix No. 6), Portfolio of microfinance services provided (Appendices No. 7, 8), Portfolio of securities and investments (Appendix No. 9), Information on attracted funds (Appendix No. 10), Information on issued guarantees and sureties (Appendix No. 11), Information on compliance with prudential standards (Appendix No. 12).

Specifically for leasing organizations:

Financial statements in the form of a balance sheet and income statement (in the form approved by the Ministry of Justice of the Republic of Uzbekistan No. 1209 dated January 24, 2003) for the last financial year, as well as for the first day of the current month, a breakdown of fixed assets, accounts receivable and accounts payable, as well as the leasing portfolio for the first day of the current month in the form provided below.