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.
- Reduce poverty and promote sustainable development;
- Provide long-term financial support to small and medium-sized businesses;
- Environmental protection.
|Loan amount||10,000 - 400,000 USD||10,000 - 400,000 equivalent MNT|
|Interest rate per annul||4.75%||7%|
|Loan period||3-10 years|
|Grace period||1-3 years /Depending on the loan period/|
|Others||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;
- Alcohol and tobacco;
- Loans designating more than 20% to current assets purposes.