Amidst the slowdown in lending, Nurbank has been demonstrating consistent growth in the SME lending sector since the end of last year. While at the beginning of 2008, Nurbank's share in this segment was 2% of the total market, today this figure has reached 5%, and the number of SME clients at Nurbank has quintupled. A significant role in this rapid leap was played by the cooperation with the "Damu" Entrepreneurship Development Fund. In August 2008, a loan agreement was signed by Nurbank and the "Damu" fund, under which the financing amount for SMEs was set at 10 billion tenge, split 50/50 between Nurbank and the fund. From the very start of the program, entrepreneurs showed high interest, partly explained by the low-interest credit rates offered by the "Damu" program. Additionally, Nurbank provided a flexible approach and high-quality service to its clients. At the program's launch, Nurbank's employees developed an effective product line targeting all SME segments.
The results were not long in coming: Nurbank was among the first to fully and ahead of schedule utilize the funds under the "Damu" program. According to the agreement, the bank was to utilize the funds by February 15, 2009, but later committed to deploying the funds by December 25, 2008, to support small and medium businesses. And it happened. Moreover, all loans were issued at a beneficial rate of 12.5%.
Such a successful start to the cooperation could not help but influence further plans. On February 14, 2009, Nurbank signed a General Agreement with JSC "Entrepreneurship Development Fund "Damu" for a total of 8 billion tenge. The program's goal remains the support and development of small and medium entrepreneurship. The maximum loan amount is 750 million tenge, with a term of 5 years at a rate of 10.5%, whereby the annual effective rate does not exceed 12.5%. Loan purposes include acquisition and modernization of fixed assets, replenishment of working capital, and refinancing of existing loans.
Funds from the "Damu" fund will be disbursed in tranches: the first will be carried out by the end of February of the current year. All funds will be fully utilized by the end of June 2009.
Already, it can be confidently stated that the jointly launched lending program with the "Damu" fund for SME clients will enjoy heightened interest from entrepreneurs.
What will be the terms for providing loans?
Firstly, collateral property is necessary. Importantly, not only the client's existing property can serve as collateral, but also acquired real estate, transport, equipment, and goods in circulation. Loans are issued under the "SME-Real Estate," "SME-Auto," and "SME-Business" programs. It is worth noting that incoming applications are considered promptly, taking into account the specifics of each project. Regarding the documents required for obtaining a loan, it includes a standard package: the borrower's title documents, collateral property documents, financial documentation, and project information.
It remains to add that within the accepted development strategy, Nurbank plans to expand its work with small and medium businesses on a large scale. Successful cooperation with JSC "Entrepreneurship Development Fund "Damu" allows Nurbank to offer its clients cheaper loans than the current market of banking services offers, thus contributing to the State Program for the development of small and medium businesses in Kazakhstan.