1. Requirements to SMEs for obtaining lending via banks:
- meeting the general requirements to SMEs;
- submitting a statement acknowledging meeting the following requirements:
- the credit awarded to the SME shall correspond to I-III quality category, or be placed to a portfolio of homogeneous loans of a similar quality class on the date of granting secured loan rights;
- absence of a file of unpaid settlement documents with respect to taxes and duties on settlement accounts of the SME open by the partner bank;
- absence of facts of improper use of funding received earlier via the OJSC SME Bank;
- positive business reputation (absence of negative information on reputation) as assessed by the partner bank.
2. Profile of SME loans
The loan can be used for the following purposes:
- purchase, repair and upgrading of fixed assets;
- building of physical infrastructure for a new enterprise;
- enhancing active production facilities;
- implementation of new technologies;
- development of scientific, technical and innovative projects;
- advancement of export operations and import substitution;
- inventory acquisition;
- real estate lease;
- participation in a public contract.
The loan purposes stated in the loan agreement signed by the partner bank and the SME may differ in their wording from this list, however their economic content must correspond thereto. Proper use of funding by SMEs is controlled by both partner banks and the OJSC SME Bank.
- minimal term - 6 months;
- maximum term - depends on the terms for the final repayment by the partner bank of its debt to the OJSC SME Bank.
Loan Sizes: under 60 mln. RUB out of the funds of the OJSC SME Bank.
The interest rate and other payments shall be set by the partner bank depending on the quality of collateral and financial standing of the enterprise.
3. Loan Security:
To be awarded a loan the enterprise has to provide some form of security: mortgage of buildings, structures, pledge of inventory, automotive transport, other liquid assets, banker’s bond, third-party guarantees and other types of collateral.
The security must be sufficiently liquid, there must not be any legal restrictions on the disposal of property, the borrower must ensure safety of the pledged property.
The collateral must cover at least 75% of the principal debt.
The agreement signed by the partner bank and the SME must include the following terms:
- absence of a prohibition to assign or mortgage the lender’s rights (of the partner bank) to third parties;
- a settlement account of the SME open with the partner bank, as well as granting the partner bank the right to direct debiting with respect to SME settlement accounts open with the partner bank.
The loan documentation related to SME lending out of the finds of the OJSC SME Bank must necessarily include the following terms:
- information confirming that accounts receivable with respect to the loans awarded to SMEs are fully pledged to the OJSC SME Bank and in future may be assigned hereto. Partial pledge or assignment of these receivables is not permitted;
- granting the OJSC SME Bank the right to inspect financial and economic activity directly at the SME’s location (including inspection of actual proper use of the loan);
- ability to repay the debt to the correspondent account of the partner bank open with the OJS SME Bank;
- submitting a statement on the absence of signs of affiliation with state authorities by the partner bank and persons (with the exception of natural persons) unrelated to SMEs.
The requirement to SMEs and SME loans are elaborated in the Provision on SME Lending Standard of the OJSC SME Bank.
Please be aware that partner banks determine SME loan availability independently, and may introduce additional conditions that you can learn from the partner bank.
Please, address questions on the SME Lending Program to the OJSC SME Bank at the following e-mail address: firstname.lastname@example.org