Horticulture cluster – funding through the RKDF partner MFO

In the framework of the "Microfinance through microfinance organizations of the Kyrgyz Republic” Program


Growth in horticulture production and increase of the export potential of the Kyrgyz Republic in this area

Target borrowers:

Small businesses of various organizational and legal forms, residents of the Kyrgyz Republic with an experience in any of the following areas:

- processing of land used for horticulture production and perennial plantations of crop production (including machine-tractor stations);

- seed growing and cultivation of fruit nurseries;

- growing fruit and vegetable products;

- production of organic and mineral fertilizers;

- transportation, storage, distribution or sale of horticulture;

- horticulture processing;

- production of succulent feed.

Target-oriented loan disbursement:

Investment objectives:

  • Purchase of equipment, machinery and units for the implementation of projects of technical re-equipment, modernization and expansion of existing production or creation of a new production, including indirect costs under the relevant contracts (costs of paying customs duties, taxes and fees; costs of engineering, installation supervision, construction, installation and commissioning; costs of spare parts; costs of personnel training, involvement of specialized independent experts, etc.);
  • Execution of construction and installation work related to the construction, reconstruction or technical re-equipment of facilities (including production facilities, engineering and transport infrastructure, greenhouses, trellis systems and irrigation facilities);

Funding of expenses for the acquisition of real estate objects (land plots, buildings and structures for industrial and/or agricultural purposes).

Current assets funding:

  • Purchase of raw materials, seeds, POL and fertilizers;
  • Purchase of spare parts for production equipment, agricultural machinery and transport;
  • Purchase of materials (including containers for transportation);
  • Payment of logistics costs.

Borrower own contribution:

For investment loans - at least 15% of the project cost.

Funding currency:

Kyrgyz som

Funding amount:

up to 1 million Kyrgyz soms

Loan term

· Investment purpose – up to 5 years;

· Current assets funding - up to 2 years.

Exemption period:

· Investment loan - up to 12 months;

· Current assets funding - up to 3 months.

Interest rate for the end borrower:

Kyrgyz som - 14% per annum

Collateral security requirements for the end borrower:

Requirements in accordance with the regulations of MFO

Collateral security requirements for MFO:

In accordance with the RKDF Regulation “On targeted funding of microfinance organizations by the Russian-Kyrgyz Development Fund”.

Application of the norms of "Microfinance through microfinance organizations of the Kyrgyz Republic" Program:

In all aspects not directly regulated by this Product, the norms of the RKDF Program "Microfinance through microfinance organizations of the Kyrgyz Republic" are subject to application.