Kazakh banks increase lending to SME

Business Materials 13 August 2015 17:35 (UTC +04:00)

Baku, Azerbaijan, Aug. 13

By Elena Kosolapova - Trend:

The Kazakh banks increased lending to small and medium business by 10 percent from June 2014 to June 2015, Ranking.kz. analytical service said.

The consumer lending volume to small business decreased 57 percent.

As of June 2015, a portfolio of loans delivered to small and medium business amounted to 1.69 trillion tenge (187.85 tenge = $ 1) versus 1.54 trillion a year earlier.

The demand for short-term loans was higher than for the long-term ones. The average monthly growth rate was 1.7 percent and 0.8 percent respectively (June 2014 and June 2015).

According to the National Bank of Kazakhstan, the interest rate on consumer loans to small business was 12.4 percent, while 11.8 percent for loans to small and medium business in June. A year ago, this figure hit 13 percent and 11.2 percent respectively.

Consumer loans are gradually losing popularity among entrepreneurs using them for business purposes. Currently, the preference is given to the multipurpose loans for small and medium business. This is stipulated by their considerable optimization, namely, simplification of the financial analysis procedure, the reduction of the bid consideration period and lower rates.

The introduction of the fast multipurpose loans for small companies and individual entrepreneurs in Kazakhstan will boost the growth of the loan portfolio of small and medium business.

ATF bank offers one of the fastest loans. The bid consideration period is four days. A maximum loan amount is 30 million tenge. The loan is delivered in the national currency for a period of up to three years.

Savings Bank delivers loans to small and medium business for any purpose with the bid consideration term of three days. The maximum loan amount is 15 million tenge (for Almaty and Astana - 30 million), but not more than 50 percent of the value. The loan term is up to seven years.

Kazkommertsbank offers entrepreneurs to take a loan for any purposes for up to five years.

The maximum loan amount is 19 million tenge.

Edited by CN