How the start of quarantine affected the number of loans issued to SMEs
In March 2020, the state-owned private bank increased the number of targeted loans and issued loans up to 15% to small and medium-sized enterprises.
Last month, the financial institution financed 1,500 projects in February – 1,230, according to the bank’s press service. The increase in the number of loans issued was due to the intensification of leasing and lending programs for the agricultural sector, PrivatBit explained.
Overall, in the first quarter of 2020, the volume of financing of small and medium-sized businesses by PrivatBank increased to 640 million UAH. Today, 127 thousand SMEs and entrepreneurs are able to obtain bank financing by credit limit. For targeted lending programs, limits are available for 63 thousand customers.
PrivatBank also noted that with respect to quarantine and the introduction of “credit holidays”, 2500 SMEs and entrepreneurs are ready to take advantage of the bank’s program.
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Earlier, we wrote that PrivatBank introduced “credit holidays” for small and medium-sized businesses and entrepreneurs from March 1, 2020 to the end of May. According to the bank, the new change will affect both past due loans and loans without loans that were not repaid on time.
The preferential regime for servicing loans will be valid for all customers of small and medium-sized businesses who have a product “current account credit limit” (credit limit for rakhunka). The requirement for mandatory monthly zeroing of the limit was postponed until the end of May 2020.
We also pointed out that due to the inevitable slowdown of the domestic economy and increased banking risks due to quarantine, the cost of loans to businesses will automatically increase. In this regard, banks have already started revising the rates on their loan products. Therefore, TAScombank decided to continue lending to the business, however, with interest rates increasing by 1-2% for the loan for a period of 180 days, and Globus Bank increased the requirements for the initial payment to 40%. Extended from.
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