The use the funds of Entrepreneurship Development Fund

The use the funds of Entrepreneurship Development Fund

Credit terms:

Amount of credit: 5000-5000, 50001-500000, 500001-10000000 Manat

Interest rate: 5 %

Period: 3, 5, 10 years

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Main Goal:

To support the development of entrepreneurship upon rendering loan services at the expenses of the Fund’s facilities.

Administrative territory – all regions of the Republic of Azerbaijan excluding the Autonomous Republic of Nakhchivan.

Branches securing the program implementation: - Branches of Baku, Barda, Lenkoran, Salyan, Ujar, Imishli, Ganja, Khachmaz, Shaki and Shamakhi.

Subjects of crediting - entrepreneurs.

Purpose of a loan (Priority areas of economy)

  1. Development of information technologies;
  2. Tourism sector ;
  3. Agriculture
  4. Entrepreneurship activity with innovation tendency
  5. Food industry
  6. Light industry.
  7. Chemistry Industry.
  8. Mechanical-engineering industry
  9. Manufacturing of construction materials based on local raw-materials
  10. Economic fields grounding on population’s traditional and historical labour habits (carpet-making, braiser-making and so on)
  11. Wood processing and furniture production
  12. Service fields.

Limit and term of credit:

  1. For the small size loans from 5 000 manat to 50 000 manat – up to 3 (three) years;
  2. From 50 001 manat to 500 000 manat fro medium size loans up to 5 (five) years;
  3. From 500 001 manat to 10 000 000 manat for the big loans – up to 10 (ten) years;
  4. Loan grace period depending on the nature of the business entity is determined based on the cash flow and the loan term can cover the first 1/2 of the period. During the grace period entrepreneurship is paying only interest debt, not conduct any payment on the main debt of the loan.

Credit interests and commission fees:

  1. Annual interest rate  -  5 % (to finance development projects in the mass media - 4 %).
  2. The commission fee within the limits determined by the Board on credit appreciation and the rendered services.

Payment of loans and interests  

  1. The payment of interests calculated for credits at least once in a month;
  2. The repayment of the principal amount of a debt will be implemented from the term envisaged by the loan agreement after expiry of the allowance term applied to the principal debt amount.

The applicants for loans have to present the following documents:

  1. Application for loans;
  2. Business Plan (Credit project);
  3. The liquid pledge property as a warranty for credit or guarantee;
  4. Insurance of the pledged property is expedient.