In 2021 SMEs will be able to cut the rate on current microloan agreements by half

SMEs that previously received microloans as state support measures and used funds, including to create new jobs, will be able to conclude an agreement on reducing the interest rate by half with the Ministry of Economy of the Republic of Tatarstan “Entrepreneurship Support Fund”. Debt reduction will extend to the remaining period of the microloan agreement.

Microfinance is still one of the most popular measures of financial state support for small and medium-sized businesses. So, in 2019, micro-loans were granted to SMEs totaling 934.6 million rubles, while in 2018 this amount was 381 million rubles. The interest rate for the Standard program, which is most demanded by entrepreneurs of Tatarstan, is 7.5%, for certain preferential categories of entrepreneurs the key rate of the Central Bank today is 6%, and for participants in special programs - 5%.

To further reduction of the interest rate, the head of the business or his legal representative must apply to the “Entrepreneurship Support Fund” in order to conclude an additional agreement to the existing microloan agreement. It should be noted that SMEs can apply for a reduced rate as part of an additional agreement if they have received microloans in the amount of up to 2.5 million rubles and have employed at least one person in their companies. If the amount of the microloan exceeded 2.5 million rubles, the number of jobs created should be at least two.

“The development of small and medium-sized enterprises is one of the priority areas in the economy of Tatarstan. Significant reduction in the rate on microloans will allow to release part of the funds planned for loan repayment and redirect them to further business development and creation of new jobs”, noted Farid Abdulganiyev, Minister of Economy of the Republic of Tatarstan.