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"Market and Pasture Management Development" Project Loan Guarantee Program /International Fund for Agricultural Development/

"Market and Pasture Management Development" Project Loan Guarantee Program /International Fund for Agricultural Development/

Since June 3rd, 2014, XacBank and  IFAD's project unit has been cooperating on the "Market and Pasture Management Development"  loan guarantee program.

Guarantee Program Purpose:

  • Provide loan guarantees for businesses that lack the necessary collateral for loans;
  • Promote value added returns in the agriculture industry;
  • Create job opportunities;
  • Part of the government implemented agenda to provide support to small and medium-sized manufacturers within the SME sector, as well as livestock owners, raw materials suppliers, herders, farmers, and small and medium-sized industrial projects.

Guarantee Program Terms:

Terms
Clarification
Maximum amount of loan
1. Up to the equivalent of 300,000 USD in MNT for SME factories;
2. Up to the equivalent of 100,000 USD in MNT for herders and suppliers.
Guarantee percentage
1. 50% of loan for SME factories;
2. 60% of loan for cooperatives.
Guarantee Period
The guarantee period of up to 5 years is to be consistent with the loan term period entered into between the bank and the borrower according to the contract.
Guarantee commission
Aside from the fees and commissions paid by the borrower to the bank, the borrower must also pay in advance the equivalent of 1% of the present value of the guarantee loan amount on a one time, non-refundable basis.
Loans covered by guarantee
1.2 stage JICA loan;
2.SME development fund;
3.ADB's "Agriculture and Rural Development Project";
4.Other funds financed through the government;
5.Commercial and other loans.