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Small and Medium Enterprise Development and Environmental Protection 2 Stage Projects


10.000-400.000 usd (or equivalent MNT)


3-10 years


USD 4.93%

MNT 6%

Small and Medium Enterprise Development and Environmental Protection 2 Stage Projects

Two stage projects lending from Japan International Cooperation Agency designed to promote small and medium business development. Since 2006, XacBank and JICA have been cooperating on 1 and 2 stage projects.

Project Purpose:

  • Reduce poverty and promote sustainable development;
  • Provide long-term financial support to small and medium-sized businesses;
  • Environmental protection.

Loan Terms:

Loan amount
10,000 - 400,000 USD
10,000 - 400,000 equivalent MNT
Interest rate per annul
Loan commission
Loan period
3-10 years
Grace period
1-3 years /Depending on the loan period/
General terms and conditions of the bank


  • Registered in Mongolia, currently operating;
  • Majority (51% or more) owned by Mongolian private equity company;
  • Corporate income tax of 10% per capita;
  • Total employees must be fewer than 200 for manufacturing sector and fewer than 50 for service sector;
  • No previously owed loans or overdue loans, financially solvent;
  • Minimum 20% of total project cost is to be financed by the borrower;
  • Project must have a minimum 13% return on investment;
  • For the duration of the loan, minimum of 1.3 for annual net operating income and debt service ratio;
  • Other requirements from the bank.

Project types not supported:

  • Businesses with a negative impact on social morality;
  • Businesses with a negative impact on the environment;
  • Retail and wholesale;
  • Businesses with a bad credit history;
  • Construction or real estate;
  • Consumer loans;
  • Personal loans;
  • Mining;
  • Alcohol and tobacco;
  • Loans designating more than 20% to current assets purposes.