Damascus - Sana
The People's Credit Bank issued today new instructions, controls and conditions for granting productive loans to micro, small and medium enterprises.
According to the instructions, the loan ceilings for all sectors and economic, commercial, industrial and service activities are set at 30 million Syrian pounds for micro-enterprises, 200 million Syrian pounds for small projects, and 500 million Syrian pounds for medium-sized projects.
In a statement to SANA’s representative, the general manager of the bank, Dr. Nidal Al-Arbeed, explained that he is working with these instructions and controls as of his date, stressing that they aim to provide greater support for micro, small and medium projects and come based on the circular of the Central Bank of Syria related to allowing the granting of direct facilities exclusively for project financing.
Al-Arbeed explained that the instructions are “more flexible than before” by simplifying procedures to facilitate granting loans to owners of micro, small and medium enterprises that are very reliable at the current stage, whether in terms of taking them off or increasing the pace of their production and securing important incomes for their owners that contribute to improving their conditions and support the economy the National.
Al-Arbeed indicated that the bank, through the controls, paid special attention and care to solar energy loans that aim to finance the purchase of the solar heater or photovoltaic cells to generate household electric power or for economic activities “alternative energy projects”, stressing that the bank will contract with companies producing solar heater panels and photovoltaic cells that will be financed Purchase them so that the documents required for the loan are determined by the company that will be contracted with.
In accordance with the regulations and according to the activity of the project, the bank grants industrial loans to craft industries or crafts, professions and industrial projects and to industrial and craft establishments located in cities and industrial and craft areas, as well as service loans to doctors, veterinarians, radiology houses, laboratories, pharmacists, agricultural and veterinary pharmacists, institutes, private schools, nurseries, hospitals, universities, private academies and medical centers and tourism projects.
The bank also provides loans for service projects such as financial brokerage companies, security companies, cleaning companies, and financing the purchase of fixed equipment. It specifies the required documents, whether related to licenses, ownership contract or lease, according to the type of project. The bank also provides commercial loans by requesting a certificate from the Chamber of Commerce, a commercial register, and an administrative license from the municipality or governorate. The commercial register and administrative license are sufficient in case the loan is micro-finance.
The objectives of the loans granted by the bank and their duration in accordance with the regulations are limited to a loan to finance the working capital of the project and its duration is only one year, a loan to compensate for the lack of liquidity resulting from the establishment of the project, for a period of three years, and a loan to purchase fixed equipment for the project, with a period of five years for commercial, professional, service and craft projects, and 10 years for industrial and tourism projects. Hospitals, laboratories, medical centers, universities, private academies, alternative energy projects, and a loan to establish the aforementioned projects within the same time periods.
The maximum amount of financing in relation to working capital and compensation for the lack of liquidity resulting from the establishment is set at 60 percent of the net solvency of the dealer, which is meant by the difference between the assets, excluding the value of the property and the vacancy, and the obligations incurred by the dealer according to the statement in the loan application.
The maximum purchase amount of fixed equipment is set at 60 percent of the value of the equipment to be purchased or 60 percent of the customer’s net solvency, “whichever is lower.”
The interest rates imposed on the entire value of the loan and throughout its term, whether it is short, medium or long-term, depending on the project, whether it is a craftsman, professional, commercial, tourism, hospitals, laboratories or solar energy, ranges between 8.5 and 10 percent. When implementing the loan, the bank charges commissions and expenses Stamps and applicable fees.
In the event of delay in paying the due installments of the loans executed in accordance with these regulations for their due dates, the bank shall collect an interest rate of 16 percent, and this rate includes the contractual interest applicable to the loan specified in the loan contract, and the rest is delayed interest.
With regard to guarantees, personal guarantees can be accepted for loans of up to 5 million Syrian pounds, i.e. guarantees of people with limited income working in the state according to the percentage applied in their loans and guarantees of owners of productive activities so that the solvency of the guarantees covers three times the loan and its interests.
In-kind guarantees are also accepted for loans exceeding five million Syrian pounds, covering 150 percent of the loan amount and interest if they are real estate. If the guarantee is (cash, investment certificates, deposits, current accounts, certified checks, and bank guarantees), it must cover 125 percent of the loan amount and its interests. Both personal and in-kind guarantees The estimated value of the in-kind guarantee must not be less than 75 percent of the loan value and its interests.
According to the controls, real estate guarantees are evaluated by at least one appraiser or real estate evaluator approved by the Ministry of Finance and the Real Estate Finance Supervisory Authority if the value of the credit facilities is less than 10 million pounds, and by two appraisers so that the lowest value of the appraisal is adopted in the event that the value of the facilities From 10 million pounds or more, and in two cases, when credit facilities are granted and when the facilities are classified as unproductive.