In order to process your request for Project loan you need to have a current account with the bank
The main purpose of this project loan is to finance working capital and investment financial needs of the project implementer in order to exclusively improve the enterprise’s value-added chain (herders, supply chain, manufacturing, marketing, domestic and foreign trade, branding and management system of the company).
This project loan is dedicated to invest exported and substituting imported products as well as finance industrial equipment, fixed assets, and working capital of your manufacturing enterprises.
This project loan is especially designated to support and expand existing businesses of small and medium enterprises and allow them to implement new projects. The loan could be disbursed for following investments:
- Construction and renovation of industrial or service building;
- Purchase of industrial or service building
- Purchase of equipment, furniture, tools, and machineries.
Certain part of the loan can be used for financing the working capital of the business.
This loan is for small and medium-sized enterprises (SME) with lack of collateral to expand their businesses and start new projects. Moreover, you can buy assets, equipment, and finance current assets.
The main purposes of the two step project loan are the expansion of existing businesses and the development of new projects by building, purchasing, and renovating an industrial and service purpose property and buying equipments, furnitures, and tools.
you can insure the purchased asset through our bank
- Most suitable financing method for funding the working capital and investment needed to extend and improve sales and supply chain of the companies processing agricultural raw materials and manufacturing final products
- Loan amount limit is higher when compared to other project loans
- Collateral requirement is comparatively low depending on the terms and conditions of the contract signed with project sponsor
- Most suitable for making an investment in the manufacturing of exported goods especially in financing the industrial equipment
- Due diligence is easier and grant decision period of the loan is shorter when compared to other project loans and Environmental Impact Assessment is not required
- Suitable for investment financing of all type of small and medium enterprises
- No limitation in loan amount, business sector, and engaged activities
- The borrower can be an individual
- Due diligence is easier and grant decision period of the loan is shorter when compared to other project loans and Environmental Impact Assessment is not required
You can get a loan at lower interest rate than regular loan for business that guaranteed by Credit Guarantee Fund from all our branches.
- This is the most flexible financing with longer maturity and lower interest rate for expanding your manufacture and developing new project.
You can monitor your credit account through TDB Online
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Amount
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USD 150,000.0-3,000,000.0 or an equal amount of MNT
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Interest rate
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MNT
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Up to 8% per annum
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USD
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Up to 7% per annum
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Tenor
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3-7 years
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Assessment fee
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0.15% (to be taken once from approved amount)
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Service fee
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0.5%
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Requirements for the borrower
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- To be a private enterprise manufacturing final products of value-added chain
- At least 3 years’ experience in the agricultural sector
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Requirements for the project
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- A project that aims to develop value-added chain, increase personal income of the rural population, and create job vacancies
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Amount
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Up to EUR 250,000.0 or an equal amount of MNT
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Interest rate
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MNT
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16.0 - 18.0% per annum
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EUR
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7.25 - 10.0% per annum
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Tenor
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Up to 5 years
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Service fee
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0.3% (min 50 000 MNT)
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Requirements for the borrower
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To be a private-dominated enterprise registered in Mongolia
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Requirements for the project
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To be an industrial-oriented project of exported or substituting imported products
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Amount
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According to the amount approved by the project selection committee
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Interest rate (MNT)
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7.0% per annum
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Tenor
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Up to 5 years
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Assessment fee
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No
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Requirement for the borrower
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- At least 20% of the project cost should be financed by the borrower’s own fund
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Borrower
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Small and medium-sized enterprises (SME)
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Loan amount
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Until MNT 2 billion
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Interest rate
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8.88%-12.34% per annum
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Tenor
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Up to 10 years
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Grace period
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Up to 2 years
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Service fee
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Amount of guarantee
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30%-60% of total loan amount
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Guarantee commission of Credit guarantee fund
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50,000 MNT
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Guarantee fee of Credit guarantee fund
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1% of total guaranteed amount every year
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Amount
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Up to MNT 800,000,000.00 or an equal amount of USD
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*Interest (Varies semi-annually)
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MNT
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₮7.0% per annum
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USD
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$10.27% per annum
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Tenor
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Up to 10 years
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0.5%
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Requirements for the borrower
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To be a private-dominated or domestic-dominated enterprise registered in Mongolia
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Requirements for the project
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1. At least 20% of the project cost should be financed by the borrower’s own fund
2. No negative impacts on environment
3. Working capital finance should not be more than 20% of the total project finance.
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*Interest rate as of the first half of 2023
For legal entities:
- Loan application (Please click here or visit branch to find the form);
- Certificate or Reference of Small-medium sized enterprise;
- Company charter and regulations;
- Sharerholder approval to get the this loan;
- Copy of personal ID of exceutve managers;
- Introduction of company;
- Project introduction (Please find the form from our branch);
- Financial statements for the last 1-2 years;
- Contracts associated with business operation;
- Operational licenses if there is special license requirement;
- Collateral and land documents (original);
- Income, expense, payable, receivable, and essential documents to prove funding;
- Detailed reference to real estate owned by loan applicant;
- Other documents required from the applicant during the loan analysis process.
For individuals:
- Loan application (Please click here or visit branch to find the form);
- Certificate or Reference of Small-medium sized enterprise;
- Copy of personal ID (relevant for co-borrower as well);
- Operational licenses if there is special license requirement;
- Project introduction (Please find the form from our branch);
- Collateral and land documents (original);
- Financial statements for the last 1-2 years, if do not report financial statements, balance statements and bookkeeping note are required;
- Contracts associated with business operation;
- Income, expense, payable, receivable, and essential documents to prove funding;
- Detailed reference to real estate owned by partner of loan applicant;
- Other documents required from the applicant during the loan analysis process.
- production or activities involving harmful or exploitative forms of forced labor1 or child labor;2
- production of or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements or subject to international phase-outs or bans, such as (a) pharmaceuticals,3 pesticides, and herbicides,4 (b) ozone-depleting substances,5 (c) polychlorinated biphenyls6 and other hazardous chemicals,7 (d) wildlife or wildlife products regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora,8 and (e) transboundary trade in waste or waste products;9
- production of or trade in weapons and munitions, including paramilitary materials;
- production of or trade in alcoholic beverages, excluding beer and wine;10
- production of or trade in tobacco;10
- gambling, casinos, and equivalent enterprises; 10
- production of or trade in radioactive materials,11 including nuclear reactors and components thereof;
- production of, trade in, or use of unbonded asbestos fibers;12
- commercial logging operations or the purchase of logging equipment for use in primary tropical moist forests or old-growth forests;
- marine and coastal fishing practices, such as large-scale pelagic drift net fishing and fine mesh net fishing, harmful to vulnerable and protected species in large numbers and damaging to marine biodiversity and habitats;
- real estate investment, if non-owner occupied, or property acquisition;
- commercial real estate construction unless SME owner-occupied
- heavy construction material-related sectors;
- multi-family housing construction;
- all mining, mineral processing and extraction activities;
- businesses involved with oil or energy import;
- businesses involved primarily with the import of luxury items;
- SMEs that are subsidiaries of or controlled by large enterprises;
- wastewater treatment activities; and water supply activities.
