OREANDA-NEWS. August 25, 2010. Uniastrum Bank’s collaboration with the Enterprise Assistance Fund will make taking out a loan easier for small and midsized enterprises operating in the Magadan region. Borrowers lacking sufficient liquid collateral can use a Fund guarantee to obtain the credit amount they require. The Fund is able to guarantee up to 50% of the loan commitments undertaken by a small or midsized business, although the amount provided by the Fund may not exceed Rb 5 mn per single borrower, reported the press-centre of Uniastrum Bank.

SMEs registered and working in the Magadan region can apply for an Enterprise Assistance Fund guarantee in order to secure a Uniastrum Bank loan. Eligibility criteria require that borrowers must have been engaged in their line of business for at least one year, are current on taxes and other budget payments and are able to supply a minimum 50% of the principle. Loans are repayable over a period of up to 10 years, while interest rates begin at 15.5%, depending on the credit amount, as well as the term, and type of security provided. Payment of the principle can be deferred for up to 6 months.

“SME development in the Magadan region is no easy matter largely due to the difficulties caused by the general remoteness of the area as a whole, the harsh climate, and the shortcomings of the transport infrastructure,” notes Igor Apostolov, Director of Uniastrum’s Department for Cooperation with Government Agencies. “That said, however, people living there should not have to feel cut off from Russia’s business mainstream. We are hopeful that our partnership will prove highly productive. Uniastrum Bank already has a wealth of experience in over 30 regions to draw upon when it comes to working with SME assistance funds and is the only bank to use funds provided by the Russian Bank for Development under a government program to support small and medium-sized enterprises in Magadan and the Madadan region.”