Microfinance

Today microfinance in Russia is one of the fastest growing sectors of the financial market, leading to the general improvement of the socio-economic situation in the sphere of business and simplifies the procedure of starting a business.

At the present moment in Rostov region a lot of attention is paid to microfinance that leads to improvement of the socio-economic situation in the sphere of business in the region, and alleviation of the access of small and medium-sized businesses involving loan resources.

Microloan is a loan, provided by lender on the terms stipulated by the loan agreement, in an amount not exceeding one million rubles.

Microloans in Rostov region are provided by microfinance organizations and credit cooperatives which are regulated by the Federal Laws dated 02.07.2011 № 151-FL “Concerning Microfinance Activities and Microfinance Organizations” and dated 18.02.2009 № 190-FZ “Concerning Credit Cooperation.”

The region has 14 microfinance organizations founded by the executive authorities and local governments of Rostov region, namely:

  • noncommercial partnership “Rostov regional business support agency” (hereinafter — NP “RRBSA”);

  • 2 business support agencies (in Belokalitvinsky and Kuibyshev districts);

  • 3 local development funds (in the cities: Gukovo and Zverev and Tatsinskiy district);

  • 8 municipal funds of small businesses support (in cities: Azov, Donetsk, Taganrog, Novoshahtinsk, Rostov-on-Don, Shakhty, and in Oktyabrskiy and Bokovskiy districts).

Regional microfinance organizations actively give loans to small businesses. Moreover, these organizations serve as a kind of springboard that allows emergent entrepreneurs obtain necessary experience and good opportunity to give a good account of themselves as borrowers, without which there is no access to traditional banking services.

Compulsory conditions of loan granting are:

  • Candidate belonging to small and medium-sized business entities or infrastructure objects of support of entrepreneurship;

  • Provision of accurate information and documentation;

  • Lack of arrears to the budget on the closing date;

  • Availability of candidate’s contract performance guarantee;

  • Lack of reorganization, liquidation and bankruptcy, as well as the absence of limitations in legal terms, in accordance with current legislation;

  • Availability of settlement account.

Rate of interest for the use of monetary funds provided as a loan, is set depending on the loan sum, type and amount of security, maturity term, but not less than the discount rate of the Central Bank of the Russian Federation active on the date of the loan increased by five percentage points.

Detailed information of the conditions and procedures for obtaining loans can be found in NP “Rostov regional business support agency” tel 8 (863) 262-35-15, 240-38-13, 262-36-09 or tel “hot line” 8 −800-555-00-61.

Results of microfinance organization’s activity of 2012

Capitalization of municipal microfinance organizations is 352,2 mln rub. As of 01.01.2013 there are 483 running loan contracts for a total amount of 341,4 mln rubles, of which 383 contracts are signed in 2012 for a total amount of 235,7 mln rubles.

In order to increase volume of provided loan assets to small and medium-sized business entities asset contributions for a total amount of 69,7 mln rubles (13.9 million rubles — the regional budget, 55.8 million rubles — the federal budget) were transferred from the resources of co-financing fund of expenses of the regional budget municipal funds to support the entrepreneurship in cities: Donetsk, Novoshakhtinsk, Taganrog, Rostov-on-Don, Shakhty, as well as the Octyabrskiy district. For these purposes 12.9 million rubles were directed from municipal funds.

NP “RRBSA” is one of the largest microfinance organizations on the territory of Rostov region, which capitalization volume is 339,1 mln rubles.

In account year of NP “RRBSA” 632 loans were issued to small and medium-sized business entities on the amount of 411,5 mln rubles, from which 45 loans on the amount of 40 mln rubles were provided on special terms to small and medium-sized business entities pursuant to Decree of President of Russian Federation dated 17.07.2012 № 1015 “Concerning corrective actions of natural disaster flood in Krasnodarskiy Krai”

In order to build a complex system of microfinance in Rostov region on the basis of NP “RRBSA” representational office of Russian Microfinance Center in Rostov region was established. The representational office deals with promotion of microfinance, methodological and methodical support of microfinance organizations in Rostov region to create favorable conditions for the entrepreneurial development.