BAKU, Azerbaijan - The Azerbaijan Business Development Fund has launched concessional microloans for entrepreneurs ranging from 15,000 to 50,000 manats, with repayment terms of up to 60 months.
The grace period may cover as much as half of the loan term. Borrowers may use up to 50% of the financing for construction and repair work.
Annual Rates Range From 5% to 8%
The annual interest rate is set at 7% for projects in key priority sectors and 8% for projects in other economically important sectors.
For projects in territories restored to Azerbaijani control, the minimum loan amount is reduced to 10,000 manats and the annual interest rate is 5%.
Entrepreneurs may finance both investment and operating expenses under a single loan agreement. The product is intended to make it easier for small businesses to launch new projects and expand existing operations.
Sources: Vesti Baku; Azerbaijan Business Development Fund.