Small entrepreneurs microfinancing

This Annex 1 to the “Lending to small and medium-sized businesses through commercial banks” Program describes the conditions for small entrepreneurs’ microfinancing. Within the framework of small entrepreneurs funding, the conditions and requirements of the Regulation “On targeted funding of commercial banks by the Russian-Kyrgyz Development Fund, approved by the Decision No.5 of the RKDF Council dated April 11, 2016, are applied to commercial banks. (As amended by the Decision No. 7 of the RKDF Council dated May 26, 2017) and the "Lending to small and medium-sized businesses through commercial banks" Program (approved by the Decision No. 32 of the RKDF Board dated August 1, 2017), considering the following conditions:


Provision of microcredits for entrepreneurial activities, with the exception of consumer lending, in the following industries:

· agro-industrial complex: agricultural production (crop and livestock breeding, purchase and production of feed), agricultural production and processing, as well as projects related to the construction of fruit and vegetable storage facilities.

· light industry: garment, textile, footwear and other industries.

Loan funds should not be allocated to refinance previously received loans or other obligations, to purchase real estate, pay salaries and tax deductions, as well as finance participants in the political process.

Target market:

A small business (borrower) must not be an insider or an affiliate of the CFI or the RKDF/ RKDF officials.

Partner bank repayment risk:

A commercial bank fully assumes the MEs loan repayment risk

Terms of a loan facility a partner bank:

Up to 2 years, including 6 months of the exemption period for principal repayment (for each tranche of the loan facility).



The RKDF issues loans to partner banks in Kyrgyz soms.

Interest rate for a SEs:



The maximum interest rate for SEs on loans in Kyrgyz soms - 14% per annum.

Commercial partner bank has no right to charge any commissions and fees in excess of the interest rate, including cash services related to the issuance and maintenance of a loan.

Repayment of interest and principal by the partner bank:

Repayment of the loan principal - in equal quarterly payments after the expiration of the exemption period for the principal repayment;

 Repayment of interest - by monthly installments.

Early repayment:

SEs are entitled to a loan early repayment without any penalties, regardless of the time frame for filing an early repayment application by the SE

Partner banks are entitled to a loan facility early repayment to the RKDF without any penalties.

Collateral security  provided by a partner Bank to the RKDF:

Partner banks must provide the RKDF with collateral security that meets the criteria specified in the Regulation "On targeted finding of commercial banks by the Russian-Kyrgyz Development Fund", approved by the RKDF Council Decision No. 5 dated April 11, 2016 (as amended by the RKDF Council Decision No. 7 dated May 26, 2017), posted on the RKDF official website.

Loan facility monitoring:

The RKDF has the right to monitor the SE final beneficiaries. The partner bank undertakes to provide the RKDF with reports on the target-oriented fund disbursement in accordance with the RKDF established forms.

Activities prohibited for funding:

Production of tobacco and tobacco products, alcoholic beverages, weapons, drugs with the exception of medicines, gambling, forced and child labor, other legally prohibited activities.

The following types of funding are prohibited within the Program:

- commercial transactions funding;

- funding of current assets, except for cases when current assets funding is carried out within the framework of products approved by the RKDF Board.

As amended by the decision of the Board No. 06-2/24-5 dated May 8, 2020.

One SE loan ceiling:

The maximum amount of a loan or total debt provided by a partner bank to a SE under the Program should not exceed 500,000.00 KGS for an individual microcredit or for group microcredits for one solidary group of borrowers.

Additional requirements for collateral security:




1.       When accepting the right of claim on the existing loan portfolio as collateral security, only normal and satisfactory loans should be accepted as collateral, the amount of each of which is at least 350,000.00 KGS.



1.   The requirements for the SEs duration are determined in accordance with the policy of partner banks.

2.   Requirements for SE co-funding from are determined in accordance with the policy of partner banks.