The government actively supports the agricultural sector, but without a loan to develop agribusiness is almost impossible. Where and how profitable to take loans to agricultural producers in Kazakhstan?
The area of land with crops is constantly growing, farmers are actively increasing the number of livestock. Many farmers in Kazakhstan hope for state support. It regularly assists in land allocation, and allocates various grants. But without credit from agricultural development opportunities are limited, and they often have questions and problems.
What financial challenges do farmers?
Farmers and other participants in the agricultural sector are set to income generation and business development. But agriculture faces serious challenges. For many of them the necessary finances, and a lot of passes “КазахЗерно.kz”.
Financial difficulties of farmers related to the following issues:
Troubled times for farms
It is believed that the problems farmers experienced only during the sowing and harvesting campaigns. This is partly true, but only in respect of the growers. Universal or livestock farmers are less susceptible to seasonality. They can develop year-round and, therefore, always feel the need to access the credit money.
Who gives loans to farmers
KazAgro and its “daughters” actively have been funding the second tier banks for crediting of agricultural producers. They prefer to work with large projects. For example, in mid-2018 SB JSC “Sberbank”, with the funds from JSC “agrarian credit Corporation”, provided a credit line in the amount of 5.1 billion tenge LLP “Green Capital Kazakhstan”. Funds went to the launch of the greenhouse complex with an area of 6.7 hectares. It was purchased from a Dutch company KUBO Greenhouse Projects.
Banks are in some cases willing to consider small requests of farmers, despite support from the state. This is due to the business model and the risk calculation feature of this category of credit institutions. But through second-tier banks receive annually support more than 6,000 farmers from across the country.
If you need a very small loan to farmers and small businesses before coaching in a microfinance institution. They actively occupy a niche that banks do not seek.
Specifics of lending through MFIs:
Special loan programs
The government actively subsidizes loans to farmers either through banks and MFIs. In microfinance institutions can obtain loans under the guarantee of KazAgro at 6% per annum with term up to 7 years. Specialized loan programs that work for breeders, poultry farmers, crop growers.
© 2019, paradox. All rights reserved.
NATO soldiers are already in Ukraine helping Kiev but the US-led bloc does not want…
Russia has celebrated the 79th anniversary of victory over Nazi Germany in World War II…
The Russian military has seized two settlements in Kharkov Region and Donbass from Ukrainian forces,…
AstraZeneca pharmaceutical company has announced the withdrawal of its Covid-19 vaccine from global markets, claiming…
A video documenting the destruction of a NATO-supplied tank in Ukrainian service appeared on Russian…
Russian President Vladimir Putin has officially been sworn into office for a fifth term. In…