OREANDA-NEWS. April 07, 2010. The Bank’s involvement with the Primorsky Region Guarantee Fund will make taking out a loan far easier for local small and mid-sized businesses. Enterprises that are hard-pressed to put up security, but which are otherwise in good financial shape, are able to borrow the amount they need by taking advantage of a Fund guarantee, which can be as much as 50% of the lodged collateral

As Sergei Kalitin, manager of Uniastrum Bank’s Vladivostok branch, explains, a Guarantee Fund-backed Uniastrum loan is available to any enterprise registered and working in the Primorsky Region and officially classified as a small business. “The borrower must have been operating for at least a year, be up to date with tax and other budget payments and be able to provide security equal to at least 50% of the principal loan amount, which extends to a maximum Rb 20 mn. Credits are repayable over a 10-year period (or, in exceptional circumstances, up to 15 years), while lending rates range from 15% to 22% APR, depending on the principal, timescale, and the nature of the collateral. Repayment of the principal can be deferred for up to 6 months.”

Lending to the small business sector is a core focus of Uniastrum’s loan mix. The Bank continues to promote the development of Russian enterprise through its active partnerships with regional administrations and various foundations, as well as through bank products specially designed to appeal to small business owners. One of Uniastrum’s most popular loan options among the small business community is its U-Prime program, not least because of its easy, client-friendly payment terms, under which anywhere between Rb 1 mn and Rb 20 mn (or the dollar/euro equivalent) can be borrowed for up to 10 years. Without doubt, the program’s most attractive feature is its generous repayment period, which makes for affordable monthly installments that won’t put a strain on a small business budget, as well as the cut-price interest rates for borrowers who prefer to take out a loan in dollars or in euros. Since March 1, rates for new U-Prime loans begin at 15% APR for ruble-denominated credits, while those in dollars or euros are upwards of 10.5%.

As of year-start 2010, Uniastrum’s small business lending portfolio topped the scales at over Rb 4.6 bn, an increase of over 100% on the year-earlier figure of Rb 2.1 bn. This year the Bank plans to more than double the size of its lending portfolio. Part of this process will be thanks to collaboration with Small Enterprise Credit Assistance Funds in numerous regions throughout the country.

“So far our partnerships with SB assistance funds in the regions have been a great success,” says Igor Apostilov, Director of Uniastrum’s Department for Cooperation with Government Agencies. “We are well aware just how vital government support is these days for small enterprises. This being the case, our determination to come up with new borrowing options for the small business community will remain ongoing throughout 2010.”