The Government of Ukraine has provided Oschadbank with additional state guarantees in the amount of 4 billion hryvnias to support lending to micro, small and medium businesses in 2024. About this reported press service of Oschadbank.
The new guarantees complement the already existing limit of 4.65 billion hryvnias, which is actively used by the bank to provide business financing. Thanks to the new volume of state guarantees, Oschadbank will be able to significantly increase the volume of lending with reduced collateral requirements, which will allow entrepreneurs to expand access to financing on favorable terms.
Since the beginning of using the instrument of state guarantees on a portfolio basis in February 2021, Oschadbank has provided almost 4,400 loans in the amount of 15 billion hryvnias. Today, the total portfolio of the program is 7.5 billion hryvnias. Most of the loans were granted to agro-industrial companies, processing, manufacturing and trading enterprises. The main part of the borrowers attracted financing for working capital for a period of 2 to 3 years, while the average amount of the loan was about 3 million hryvnias.
“Oschadbank continues to support Ukrainian business, facilitating entrepreneurs’ access to financing on favorable terms. Thanks to the partial guarantee of the loan portfolio by the state, we can provide loans even to those borrowers who do not have sufficient collateral, and combine them with the program “Affordable loans 5-7-9 %””, – noted Natalya Butkova-Vitvitska, a member of the board of Oschadbank, responsible for the direction of MSMEs.
She added that business entities with an annual net income (revenue) of up to 50 million euros or with the number of employees up to 250 people can receive loans under this program. The maximum loan amount for agricultural enterprises is 100 million hryvnias, and up to 400 million hryvnias for the restoration of assets lost as a result of the aggression of the Russian Federation. The commission for the borrower will be up to 1% per annum, and the guarantee period can reach 10 years to secure debt obligations under loans granted for the reconstruction of fixed assets destroyed as a result of military aggression.
The terms of the program provide that the borrower must not have overdue debts to the bank at the time of receiving the loan. Security requirements have also been significantly reduced: the guarantee can cover up to 80% of the loan amount, especially for processing enterprises, agro-industrial complex enterprises or for business recovery. The borrower provides the rest of the financing with his own movable or immovable property.
MSME clients can submit an online loan application through the Savings Business service and receive a preliminary decision within 24 hours. Last year, thanks to this service, the number of submitted loan applications increased by 20%.
