Preferential Agro Credit

Preferential Agrocredit Project has been initiated by the Ministry of Environment Protection and Agriculture of Georgia. The purpose of the project is to improve the processes of primary agricultural production, processing, storage and sale by providing the legal and natural entities with cheap, affordable long-term and preferential funds.

Preferential Agrocredits for capital assets are disbursed for funding:

  • New agricultural enterprises and expanding the existing ones. 
  • For the cultivation of new perennial crops 
  • For agricultural and timber manufacturing mechanization

The interest rate on the loans will be co-financed by the Ministry of Agriculture of Georgia.

Main terms and conditions

COMPONENT / SUB-COMPONENT

LOAN AMOUNT

TERM

INTEREST RATE CO-FINANCING

TERM OF CO-FINANCING

Fixed asset financing

From 20 000 GEL to 1 500 000 GEL

Not more than 120 months

Annual 11%

48 months

For agricultural and timber manufacturing mechanization

From 7,000 GEL to 1,500,000 GEL

Not more than 120 months

Annual 8%

48 months

For the cultivation of new perennial crops

From 20 000 GEL to 1 500 000 GEL

Not more than 120 months

Annual 11%

48 months

For the food and energy efficient industries

From 1 500 000 GEL to 10 000 000 GEL

Not more than 120 months

Annual 11%

48 months

Preferential agro-credit up to 75 000 GEL is granted to physical(not an individual entrepreneur).

Terms keyboard_arrow_down keyboard_arrow_up

CREDIT AMOUNT

<=10 000 000 GEL

Tenor

<=120 months

Type of Interest Rate

Fixed, indexed

Interest Rate

From 11%

Effective Interest Rate

From 13%

Disbursement Fee

0.2%

Account Opening Fee

From 10 GEL

Withdrawal fee

From 0.2%

Fixed Late Payment Penalty

One-time payment of no more than 20 GEL (equivalent in loan currency)

Daily Late Payment Penalty

0.1% per day overdue. Furthermore, the total amount of expenses incurred from the first day overdue until full settlement of the overdue liability should not exceed 1.5x of the current principal balance

Early Repayment / External refinancing Fee

If repaid with own funds: 0%

If refinanced from another bank

In the case of a fiixed rate:

No more than 0% of the prepaid amount  (the amount paid to settle the outstanding principal balance at the time of prepayment) if 0 to 6 months remain before the maturity of the agreement;

No more than 0.5% of the prepaid amount  (the amount paid to settle the outstanding principal balance at the time of prepayment) if 6 to 12 months remain before the maturity of the agreement;

No more than 1% of the prepaid amount  (the amount paid to settle the outstanding principal balance at the time of prepayment) if 12 to 24 months remain before the maturity of the agreement;

No more than 2% of the prepaid amount  (the amount paid to settle the outstanding principal balance at the time of prepayment) if more that 24 months remain before the maturity of the agreement.


In the case of an indexed rate:

0% of less than 6 months remains before credit maturity;

0.5% if more than 6 months remain before credit maturity;

RE Mortgage Registration Fee

Per unit 56 GEL;

RE Mortgage Registration Cancellation Fee

Per unit 51 GEL;

Movable Property Pledge Registration Fee

Per unit 174 GEL;

Movable Property Pledge Registration Cancellation Fee

Per unit 20 GEL;

For detailed information visit the web page

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