The rules of microcredit in rural settlements and small towns have been approved

The rules of microcredit in rural settlements and small towns have been approved

The Order of the Acting Minister of Agriculture of the Republic of Kazakhstan dated December 20, 2023 No. 443 approved the Rules of microcredit in rural settlements and small towns.

Micro-loans are provided to applicants in compliance with the principles of urgency, payment, repayment, security, and targeted use on the following conditions:

1) the term of the microcredit is up to 5 (five) years, the term of the microcredit for livestock projects is up to 7 (seven) years;

2) the maximum amount of a micro–loan is up to 2500 (two thousand five hundred) monthly calculation indices, for the development of agricultural cooperatives – up to 8,000 (eight thousand) monthly calculation indices.

When re-crediting applicants who have fully fulfilled their obligations under a previously received microcredit, the maximum amount of the microcredit increases to 8,000 (eight thousand) monthly calculation indices. At the same time, micro-loans are issued at the expense of the returned funds of the applicants of the program, but not earlier than 1/2 (one second) of the maximum term of the micro-loan;

3) the nominal interest rate is no more than 2.5% (two point five) percent per annum;

4) availability of collateral;

5) the grace period for repayment of the principal debt and remuneration is no more than 1/3 (one third) of the duration of the microcredit period;

6) registration with the tax authorities in accordance with the tax legislation of the Republic of Kazakhstan as an individual entrepreneur after receiving approval for microcredit.

Applicants for micro-loans within the framework of scaling up the project to increase rural incomes are individuals and legal entities of rural settlements (regardless of their administrative subordination) and small towns:

1) unemployed;

2) persons who independently carry out activities for the production (sale) of goods, performance of works and provision of services in order to generate income without state registration as an individual entrepreneur, and (or) inactive individual entrepreneurs;

3) persons engaged in unpaid activities in family business;

4) persons who independently carry out activities for the production of products in a personal subsidiary farm for sale (exchange), with incomes below the subsistence level;

5) agricultural cooperatives operating in accordance with the Law of the Republic of Kazakhstan "On agricultural cooperatives";

6) beginning and existing individual entrepreneurs.

In 2024, funds in the amount of 100 billion tenge were allocated from the republican budget for the implementation of the Auyl Amanaty Program, which will be used to issue more than 16 thousand microcredits, which will create more than 17 thousand new jobs.