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Acquisition of New Agricultural Machinery

12%
Interest rate
7 years
Payback period

The entrepreneur is engaged in crop farming, comprising soya growing and distribution. Though, he has no processing capacities. His business history started 25 years ago from vegetables growing on 100 hectares of land. Current area under crops amounts to 4,000 hectares. He increased the soya (and grains) growing acreage in 2.5 times during the last 3 years. He plans to use the funds made available within the Affordable Loan for SMEs to buy new agricultural machinery. The fleet modernization ensures cut of the maintenance, and repair costs and increase the crop yields.

Region:
Amur region
Sector:
agriculture
Borrower:
IE Kubarev A.V.
Interest rate:
12%
Payback period:
7 years

According to Alexander Kubarev, the Entrepreneur,

“I used to receive loans for purchase of machinery and equipment from another bank, though terms changed and tuned to be uncomfortable for me. During last two years, I was not applying for loans, and was using my own funds to buy everything I needed. However, in 2015/16 the weather conditions damaged a large part of the planted acreage. Therefore, the credit support for SMEs came in handy. The program is attractive by low interest rates. The other banks refused to provide loans at less than 16.5%. I plan to use the funds provided within the Affordable Loan for SMEs program to buy the new agricultural machinery. The fleet modernization ensures cut of the maintenance, and repair costs and increase the crop yields.”