The Decree of the President of the Republic of Azerbaijan dated June 4, 2020 approved the procedure for granting preferential loans at the expense of the Entrepreneurship Development Fund, as well as amendments to the charter of the Fund. As a result of the changes made in the direction of the Fund's activities, a mechanism for providing subsidies and replacements through banks in the country to entrepreneurs affected by the pandemic was added.
In this regard, a cooperation agreement was signed between the Entrepreneurship Development Fund of the Ministry of Economy of the Republic of Azerbaijan and one of the country's leading banks, the Bank Respublika, which supports the development of entrepreneurship in our country. In accordance with the agreement, entrepreneurs who have suffered from the pandemic, half of the percent of loans received from the Bank Respublika in manats will be subsidized, and up to 60% of loans will be guaranteed by the state. The term of state-guaranteed loans is up to 3 years, the amount is up to 3 million, the grace period is up to 12 months, the interest rate is up to 15%. Thus, entrepreneurs will pay the bank half of the interest on the loan, that is, up to 7.5%, and also, if the collateral is not enough to get a loan, the state guarantees up to 60% of the loan.
One of the advantages of the new mechanism is that entrepreneurs can conveniently apply for a loan on an electronic platform without contacting a bank. For this, entrepreneurs https://e-edf.gov.az they must register their INN by going to the website and selecting the Application section. If it is confirmed that the entrepreneur works in the industries affected by the pandemic, then he can apply to the Bank Respublika for a preferential loan
| Sum |
from 20,000 AZN - up to 5,000,000 AZN (the loan can be issued in manats or US dollars - equivalent) |
| Currency | up to 12 months |
| Interest rate | depending on the quantity, duration and use of other products of the bank |
