Preferential lending program helps create new jobs

Stories of entrepreneurs of the East Kazakhstan region.

In the East Kazakhstan region, loans under the Employment Road Map program from the Agrarian Credit Corporation (ACC) contribute to the development of small businesses.

One of more than a hundred borrowers from the East Kazakhstan region is Asem Zhurtbaeva. The entrepreneur is engaged in small farming. Her farm previously had only 4 cows. To expand the business, capital was needed. Asem took courses in the training program for aspiring entrepreneurs and, having received a certificate, applied for a soft loan from a microfinance organization funded by ACC.

“This year in October, I took out a loan through a microfinance organization - 2.1 million tenge to buy cattle and expand my farm. I bought 6 more heads for 350 thousand tenge with credit money. This loan is good because the interest rate is only 6% and there are also holidays for a year. That is, only in a year will I begin to repay the principal debt, and the first year - only interest. This is very profitable,” explained Asem Zhurtbaeva.

The Agrarian Credit Corporation, a subsidiary of Baiterek NMH JSC, allocated 22.5 billion tenge to support start-up entrepreneurs under the Employment Road Map program. Through the funding instruments of microfinance organizations, these funds are available to businessmen in the regions of the Republic of Kazakhstan. In the East Kazakhstan region, today more than a hundred aspiring entrepreneurs have applied for a preferential loan at 6% per annum. The total amount of applications in the East Kazakhstan region is 432.6 million tenge.

Another entrepreneur from the same Zaisan district breeds horses with her husband. Now in the family business of Gulden Bakhtiyarova the livestock is not so large, but with the help of a loan of 7.2 million tenge from ACC, the woman was able to buy 13 heads and double the farm.

“I bought 13 horses, we had 10. Without this loan, we probably would not have been able to develop further. This loan has very attractive conditions. They have, most importantly, a grace period when you pay only interest and the principal later. This greatly helps a business get back on its feet, get stronger, and only then repay the loan in full. For example, we will pay only interest for a whole year, and then the principal. Their loan term is also very good - 6 years,” says Gulden Bakhtiyarova.

Loan terms under this program for livestock farmers are up to seven years, and for other areas up to five. In this case, the grace period can be up to 1/3 of the total loan term. Therefore, the Employment Roadmap is very relevant for businessmen from different areas of business. For example, the owner of a private company from Ridder, Amantay Abyemanov, bought a loader with borrowed money to expand the capabilities of his business.

“I bought a loader for 6 million tenge. My company now works in the field of collection of non-hazardous waste, we work on a recycling base, environmental issues, in general. And with the help of a forklift, I also want to provide auto services - loading and unloading cargo, cleaning the territory, clearing snow, etc. At the moment I am going to the tender site to provide these services. I want to say that I chose lending from ACC for a reason. Compared to private banks and microcredit firms, the conditions here are the most favorable,” Amantay Abyemanov shares his story.

Aigerim Chadayeva from Ayagoz district was able to replenish working capital with a loan by purchasing the necessary auto parts for a service station.

“Now we have taken 7 million tenge. We already have a service station. There is also equipment, but there were often not enough spare parts for the machines being repaired. But now we will be able to provide all services in one place - repair cars right there, and offer spare parts here. I would like to say that the loan turned out to be very profitable for us. The advantage is that for three years we will pay for the loan once every six months, that is, once every 6 months,” emphasized Aigerim Chadayeva.

Lending under the Employment Roadmap program is aimed at developing start-up entrepreneurs, small businesses, micro-entrepreneurship, including family and social entrepreneurship.

To receive a loan, potential borrowers must have a certificate of completion of training under the Bastau Business program or other state programs for training in the basics of entrepreneurship. Have collateral. Submit an application to the microfinance organization through the offices of NCE Atameken.

The maximum loan amount for 2022 will be up to 7.6 million tenge in rural settlements and small towns, up to 19.9 million in cities and single-industry towns, and in Shymkent, Aktau, Atyrau - up to 24.5 million tenge.

In total, to date, the Agrarian Credit Corporation has accepted applications from 1,535 entrepreneurs in the country for a total amount of more than 8.3 billion tenge.

Source: https://kapital.kz/economic/101529/programma-l-gotnogo-kreditovaniya-pomogayet-sozdavat-novyye-raboc...