Preferential Agrocredit
Preferential Agrocredit Project has been initiated by the Ministry of Environment Protection and Agriculture of Georgia and has been implemented by the Rural Development Agency since 27 March of 2013 and aims to improve the processes of primary agricultural production, processing, storage and sale by providing the legal entities and private individuals with cheap, affordable long-term and preferential funds.
As part of the project, small and medium business clients will benefit from ProCredit Bank financing.
Preferential Agrocredits are issued to finance the areas, such as fixed assets and working capital.
Depending on the purpose of the loan, the minimum amount is set at GEL 7,000 and the maximum amount is set at GEL 15,000,000.
The Agricultural and Rural Development Agency provides, depending on the purpose, the co-financing of interest for 6 to 66 months, at an annual rate of 8% -18%.
Please see detailed information about preferential agro-credit on the website of the Agricultural and Rural Development Agency.
Loans with standard repayment schedule | GEL | USD | EUR |
Loan interest rate | Fixed, indexed (refinancing rate, 6 Month TERM SOFR, EURIBOR) | ||
Nominal interest rate | From 12.50% | From 8.70% | From 8.00% |
Effective interest rate | From 14.20% | From 9.75% | From 8.89% |
Effective interest rate in case of a 3% index increase in USD and EUR / 5% index increase in GEL | From 19.89% | From 13.19% | From 12.80% |
Effective interest rate in case of 15% depreciation of the foreign currency | N/A | From 28.58% | From 28.13% |
Loan disbursement fee | From 0.20% | ||
Cash withdrawal fee | 0.20% | 0.30% | 0.30% |
Real property mortgage registration fee | GEL 158 per property | ||
Real property mortgage cancellation fee | GEL 158 per property | ||
Prepayment fee/refinancing fee on different bank loan | For fixed rate: | ||
No more than 0% of the amount paid to cover the principal balance of the loan if there are 0 to 6 months left before the expiry of the agreement. | |||
No more than 0.5% of the amount paid to cover the principal balance of the loan if there are 6 to 12 months left before the expiry of the agreement. | |||
No more than 1% of the amount paid to cover the principal balance of the loan if there are 12 to 24 months left before the expiry of the agreement. | |||
No more than 2% of the amount paid to cover the principal balance of the loan if there are more than 24 months left before the expiry of the agreement. | |||
For indexed rate: | |||
0% if less than 6 months are left before the loan expiry. | |||
0.5% if more than 6 months are left before the loan expiry. | |||