ADRA project loan
Loan purpose:
Khan bank is providing group loans in cooperation with ADRA Mongol international agency. The loan targets voluntary groups of low-income individuals operating or wish to start up a small business. The purpose of the loan is to support the business activity and improve livelihood of the groups.
Project implementation area:
Darkhan-Uul, Bayankhongor, Zavkhan, Selenge aimag
Loan condition:
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№
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Type of loan
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Purpose
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Loan amount
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Interest rate /monthly/
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Loan term
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1
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Group loan – working capital financing
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Support the business of voluntary groups participating in the economic development program
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Up to MNT 500,000-MNT 3,000,000
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2.7-2.4%
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Up to 6 moths
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2
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Group loan- fixed asset financing
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Up to MNT 500,000-MNT 3,000,000
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2.5-2.2%
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Up to 6 months
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Additional requirements for applicants:
- Income not exceeding the minimum wage determined by the Mongolian National Statistics Office
- Involvement in economic development program
- A group shall have attended the training organized as part of the ADRA Economic Development program
- No outstanding debt (applicable to groups and individual members)
- The loan application must be supported by the group members’ meeting. The groups shall have in place a business idea with proven feasibility in the local area and a business plan.
- Term deposit opened with Khan bank in the name of the group /the term of the deposit should be longer than the loan tenor/
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