Participation of Agrarian Credit Corporation JSC in the youth microcredit program

The youth microcredit program is being implemented by the Ministry of Labor and Social Protection of the Population of the Republic of Kazakhstan as part of the National Project for the Development of Entrepreneurship for 2021-2025.

The Agrarian Credit Corporation acts as an attorney (agent) within the framework of the youth microcredit program and performs the functions of accepting documents, evaluating a business project, preparing loan and collateral agreements, transferring the loan amount to the borrower, verifying the intended use of the loan, monitoring collateral, making settlements with borrowers, accepting payments from borrowers, dealing with overdue debts and submitting reports to the authorized bodies.

Microcredit is aimed at supporting young entrepreneurs aged 21 to 35 years, whose registration period as an individual entrepreneur at the time of application does not exceed 5 years. Representatives of working youth can also participate in the program.

Lending terms:

• Loan amount: up to 5 million tenge
  
• Interest rate: 2.5% per annum
• Loan term: for the development of animal husbandry - up to 7 years, for other areas of business - up to 5 years
• A grace period is provided for the repayment of the principal debt and remuneration up to one third of the duration of the microcredit term.

A prerequisite is the availability of collateral. Movable (specialized equipment) and immovable property are accepted as collateral. In the absence of collateral, it is possible to involve the Pledgor (parents, relatives, etc.).

To apply, you must submit documents to the branch of JSC "Agrarian Credit Corporation". Addresses of branches are listed on the website agrocredit.kz.

Required list of documents:

1. identity document;
   
2. business plan for the project;
3. certificates from the servicing bank on the existence of an account;
4. certificates of the presence of loan debt, including overdue ones, from financial institutions (if there are loans);
5. a document confirming the salary and (or) other income of the participant / applicant (extract from the accumulative pension fund), if available;
6. a report on the valuation of property provided as collateral;
7. documents on the mortgagor and collateral.

Microcredits are issued for any purpose, with the exception of the following:

• acquisition, construction or repair of residential real estate (including temporary/permanent dwellings for livestock breeders), acquisition of land plots (for any purpose);
  
• acquisition of securities (portfolio investments);
• production or acquisition of weapons (including components for the production of weapons), narcotic substances or other property withdrawn from civil circulation;
• organization and (or) development of gambling business;
• activities related to terrorist and any other activities prohibited by the legislation of the Republic of Kazakhstan;
• release of excisable goods/products, with the exception of projects involving the production of motor vehicles and the production of wine from grapes of own production;
• purchase of tobacco and/or alcohol products;
• repayment of accounts payable;
• personal consumption purposes not related to business.

The decision to issue a microcredit is made by a commission established under the akimat, which will include deputies of maslikhats, representatives of government agencies, the Atameken Chamber of Entrepreneurs, NGOs, the business community, and the media. Applicants present their business project at a meeting of the commission, which will evaluate business projects and select the most promising of them.

Thus, the decision to grant a microcredit is made on a commission basis, based on clear criteria for assessing the elaboration of applicants' business projects. The project must be relevant, reasoned, economically justified, socially significant, viable, with a clear action plan.

How to become a member of the youth microcredit program?