State-owned Ukrgasbank is launching a lending program for individual entrepreneurs (IEs) under the government’s Affordable Loans 5-7-9% program at 15% per annum without collateral requirements, the financial institution said in a press release on Tuesday.
“We have expanded the opportunities for entrepreneurs to attract financing by adapting our microloan to the Affordable Loans 5-7-9% program. Thanks to this, we can offer financing to individual entrepreneurs at a halved interest rate as opposed to the rate for a standard loan product,” Tetyana Kornienko, Director of Small and Medium Business Department of Ukrgasbank, said in the release.
It is specified that under the terms of the program, individual entrepreneurs can receive loans of up to UAH 1 million to replenish working capital, in particular for the purchase of goods and raw materials, for a period of 1 to 2 years.
It is noted that the bank makes a decision on such loans within one day, after which the credit funds are credited to a virtual card, which customers can use to pay in a retail network or on the Internet.
Ukrgasbank informed that several customers have already taken advantage of the program.
“The first to use the program were entrepreneurs from Lviv and Ivano-Frankivsk, who work in the field of wholesale trade in construction materials. Thanks to the funds raised, they will be able to expand the range of their products,” the statement said.
The state bank considers the requirement of a minimum package of documents, the ability to apply remotely without an in-person visit, the absence of collateral and surety, and a quick decision within 1 day to be its main advantages in microcredit.
As reported, on September 15, the Ukrainian government announced a revision of the terms of the 5-7-9 program, in particular, an increase in the interest rate on working capital loans to 13% per annum.
According to the NBU, Ukrgasbank was ranked 5th among 64 Ukrainian banks in terms of total assets (UAH 167.9 billion) at the beginning of July. Its profit for January-July 2023 amounted to UAH 2.9 billion.
