Loans for Technical Re-equipment and Institutional Development

Target group

MLC, MFC, MLA, CU and commercial banks, with a credit history at MLC “Frontiers” of at least 1 (one) year
Purpose

Provision of funds for:

  • conducting a high-quality external audit, obtaining an international agency rating, passing the process of international certification of the quality of services provided, and other goals contributing to the institutional development of FLI
  • purchase of software, office equipment, transport and other fixed assets and intangible assets that contribute to the improvement of operational activities and institutional development of FLI.
Loan size
  • Up to 1 (one) million KGS – for 1 (one) purpose;
  • Up to 3 (three) million KGS – for 3 (three) or more purposes.
Loan term

Up to 18 months
Interest rate

Defined by the Credit Committee, depending on the credit history of the FLI, the pricing policy of MLC “Frontiers” and the current financial market situation.
Provision
  • One or several of the following can be considered as a provision for a loan:
    – loan portfolio of the FLI covering 130% of the loan size;
    – guarantee(s) of key persons of FLI and/or founder(s);
    – the assets that are acquired for the loan;
    – guarantees of the third parties.
  • In certain cases, loan can be issued without provision.
Loan issuance procedure

Not more than 3 (three) tranches in 2 (two) months after signing a loan agreement.
Payment for consideration of the application and issuance of a loan

1 % of loan amount
Payment for early repayment
  • In case of prior written notice not less than in 30 days prior to date of early repayment – 0%;
  • Without prior written notice not less than in 30 days prior to date of early repayment – 2% of ahead of schedule repayable sum.
Repayment schedule

Defined by the Credit Committee of MLC “Frontiers” individually on the basis of cash flows of FLI.
Time for consideration of an application

Not more than 10 (ten) working days.
Additional conditions
  • The FLI should make own contribution of 25% from the cost of the goods and/or services acquired;
  • The FLI must have at least 3 (three) commercial offers for the supply of the required goods and/or services. The FLI must confirm its final choice in writing;
  • Within 10 (ten) working days after the loan is issued, the FLI must submit financial documents confirming the payment of invoices for purchased goods and/or services in full.