OREANDA-NEWS. May 15, 2012. The Bank has begun issuing credit to small and midsized businesses in the region under guarantees provided by the Assistance Fund. In line with the agreement, the Fund undertakes to act as surety on loans of up to Rb 10 mn.

All too often small businesses find lack of liquid collateral an insurmountable obstacle when it comes to securing a bank loan. Conscious of this difficulty, Uniastrum offers borrowers the opportunity to access credit backed by a SME assistance fund, which agrees to guarantee up to 50% of any loan commitment undertaken. Small and medium business concerns registered and working in the Kostroma region are now able to take out a Uniastrum loan thanks to the agreement recently signed between the Bank and the region’s SME Assistance Fund. In order to qualify for the scheme, borrower enterprises must have been operating for no less than one year, be current on taxes and other government payments, and be able to lodge collateral equal to at least 50% of the principal.

Uniastrum’s Kostroma office opened 5 years ago, since when it has worked actively with the local SME community. In 2011, for example, the Bank disbursed over Rb 100 mn in loans to small businesses in the region, an increase of 84% year-on-year. Similarly, in 2011 the Kostroma SB credit portfolio more than doubled, while the regional outlet’s overall credit portfolio expanded 46% to top Rb 309 mn.

“Our working relationship with the Assistance Fund means that businesses operating in the Kostroma region now stand a far better chance of securing a Uniastrum loan, even if they lack sufficient liquid collateral,” says Svetlana Chubakova, Uniastrum’s Vice President for Small Business Development. “As one of the country’s leading SME financers, we continue to do all we can to make credit available to smaller business owners. One particularly effective way of meeting this challenge is by teaming up with regional credit assistance funds.”