Follow us on the social network sites for the latest updates on our projects or so.
FacebookTwitter
picture

Loan Facilitation

  • Print

Even though banking sector in Mongolia has developed rapidly last few years, a lack of access to finance for small businesses still persists here.Many small businesses are unable to get hold of required financing for their businesses because of following problems:

  • No previous banking experience
  • Not understanding of loan terms and requirements
  • Lack of knowledge of loan relations
  • Unclear process of borrowing
  • Lack of knowledge to do business planning and financial calculations
  • Unable to fill out loan application forms correctly
  • Not knowing how to prepare required documents 

Development Solutions has been offering a loan facilitation service to small business owners, a service specifically designed to address above issues. We assist small business owners with preparing their loan applications, doing their financial calculations and present and match loans of partner financial institutions we work with. Currently Development Solutions is partnering with leading microfinance institutions in Mongolia namely XacBank, a leading microfinance bank of Mongolia as well as Transcapital, a top 5 non-bank financial institution.

In addition to helping with borrowing process, our business advisors provide trainings and consultancies on various business management topics so the loans are used effectively for the businesses. 

Development Solutions have experience in providing the service for over nine years. During this time, we’ve succesfully facilitated 4,827 businessloans with amount over US$5 million. Over 91% of facilitated loans are approved by the banks.

We currently facilitate following loans: 

XacBank

 

Start-up Loan

Growth Loan

General requirement for borrower:
  • Permanent resident of the location where XacBank operates
  • Must possess at least 3 months business experience
  • Must be able to assume responsibility for loan
  • Must not hold any debt with an organization or individual 
  • Must be a Mongolian citizen. 
  • Permanent resident of the location where XacBank operates
  • Must possess at least 6 months business experience
  • Must be able to assume responsibility for loan
  • Must not hold any debt with an organization or individual 
  • Must be a Mongolian citizen. 
  

Purpose of loan:
  • Start new business 
  • Small investment
  • Finance working assets and fixed assets
  • Finance working assets and fixed assets
  

Amount:

Up to 5.0 million MNT

5.0-20.0 million MNT

Interest Rate:

30 day interest rate: MNT 1.9%-2.3%

0.1% discount for every 180 days

30 day interest rate: MNT 1.7%-2.1%              
0.1% discount for every 180 days

Term Length:

Up to 24 months

Up to 36 months

Repayment Conditions:

The loan repayment should be made monthly with a grace period up to two months

The loan repayment should be made monthly with a grace period up to four months

Collateral Requirements:

Movable assets and real estate

Movable assets and real estate

Documents required:
  • Loan application (XacBank form)
  • Photo (size 3x4) (for new borrowers)
  • Personal ID card
  • Special operating license
  • Loan application (XacBank form)
  • Photo (size 3x4) (for new borrowers)
  • Personal ID card
  • Special operating license
  • Supporting documentation of income
  

 Transcapital NBFI

 

Supporting Capital

General requirement for borrower:
  • Must possess at least 6 months business experience
  • Must be able to assume responsibility for loan

Purpose of loan:
  • Finance working assets

Amount:

100,000-3,000,000 MNT or other equivalent currency

Interest Rate:

2,7%-3,2% (MNT)

2,5%-3% (other currency)
 

0.1-0.2% discount for every 180 days and client have fulfilled previous agreement well

Term Length:

1-24 months

Loan commission

One time fee of 0.2-0.5%

Repayment Conditions:

The loan repayment should be made monthly with a grace period up to one to three months

Collateral Requirements:

Apartment, land, real estate, movable assets (household items, electronic goods and equipment)

Documents required:

                  Entity

  1. Loan application
  2. Copy of registration certificate
  3. Charter of the organization
  4. Copy of ID card of management
  5. A copy of financial statement authorized by auditor and tax office
  6. Loan usage calculation and related contracts
  7. Special operating license
  8. Loan collateral documents
  9. Source and schedule of repayment and confirming documents

10.Other loan history documents

11.Other supporting documents as needed

                        Individual

  1. Loan application
    1. A photo
    2. Copy of ID card
    3. Reference letter for permanent place of domicile from governor
    4. Reference from the guarantor as needed
    5. Documents confirming the source of repayment
    6. Certificate of real estate
    7. Household income and expense records
    8. Other loan history documents

10.Other supporting documents as needed

Services