Geo

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.

GEL
Loan interest rateFixed, indexed (refinancing rate)
Nominal interest rateFrom 13.50%
Effective interest rateFrom 15.29%
Effective interest rate in case of a 3% index increase in USD and EUR / 5% index increase in GELFrom 21.24%
Effective interest rate in case of 15% depreciation of the foreign currencyN/A
Loan disbursement feeFrom 0.20%
Cash withdrawal fee0.20%
Real property mortgage registration feeGEL 158 per property
Real property mortgage cancellation feeGEL 158 per property
Prepayment fee/refinancing fee on different bank loanFor 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.