OREANDA-NEWS. December 16, 2010. Under the agreement the Fund will guarantee a total cap of Rb 10 mn to small and midsized businesses taking out loans with Uniastrum Bank, reported the press-centre of Uniastrum Bank.

Uniastrum’s collaboration with the Fund will make borrowing significantly easier for small and midsized enterprises operating in the Udmurt Republic. 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 any loan commitment undertaken.

Conspicuous benefits of the Bank’s SME lending programs include competitive interest rates and generous repayment periods of up to 10 years, making for smaller monthly installments and, needless to say, less strain on SME budgets. Meantime, Uniastrum continues to press ahead with devising new, sector-specific loan products. In a number of regions its first lending scheme for rental businesses is already up and running, and before too long the lender plans to launch similar programs for retail food merchants and passenger transportation companies.

A Uniastrum Fund-supported loan is available to any small and midsized enterprise registered and operating in the Urdmurt Republic meeting the eligibility criteria, i.e. the SME must have sbeen working for at least a year, is current on taxes and other budget payments, and is able to lodge collateral equal to 50% of the principal.

Consistent with its long-term strategy to promote Russian business, Uniastrum Bank plays an active role in a state-sponsored SME financial assistance program operated by the Russian Bank for Development, partners with local government and foundations in more than 30 regions nationwide, and remains committed to providing banking products and services specially designed to appeal to budget-conscious small and medium-sized businesses.

“Encouraging the development of small and medium-sized enterprise is intrinsic to our overall rollout strategy,” notes Eugene Tutkevich, Chairman of Uniastrum’s Management Board. “Thanks to their flexibility and ability to adjust to changes in the market landscape, SME are today one of our most durable business segments”.