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Small business loans: frequently asked questions

What is the difference between the Small and middle business credit program and regular crediting?
Small and middle business credit program differs from a regular corporative crediting by shorter decision making period (as a rule), more flexible approach to securities, the Borrower activity analysis basing on the actual business state data, no need to evaluate the property mortgaged at “independent” licensed valuers.

Is there a difference between the Moscow Credit Bank program and other banks ones?
Certainly. The Moscow Credit Bank program have the following advantages: the decision on the loan application is being made within 1 working day after the submission of necessary minimum set of documents. Besides, our approach to securities is quite flexible. For example, the Bank can grant loans guaranteed by the Borrower private property including that of relatives’ and third parties’. The Bank can also issue partially secured loans and security-free loans.

Can one get a loan to start a business within this program?
Within the Moscow Credit Bank program it is possible to get a loan to start a business provided that there is another business operating at least 6 months. If you are only entering into the market we can start collaboration from opening an account. In 6 months’ period you can count on the financing within the small and middle business program.

Which can be the purposes of the loans?
It is not necessary to confirm the loan purpose use within the Moscow Credit Bank (OJSC) small and middle business credit program. As a rule, the entrepreneurs purchase additional equipment, increase goods inventories or working capitals, invest to commercial realty with the funds obtained within this program.

Is there a possibility to get a security-free loan?
Yes, you can get a security-free loan as an overdraft at the amount of 35% from the average monthly turnovers on the settlement account including turnovers at other banks. The overdraft agreement is signed for the period up to 12 months.
A special Bank credit product “Tender loan” can also be security-free. It is issued to ensure the company participation in a tender or a competition for the period up to 3 months. The loan amount: from RUR 400,000 to 30, 000, 000.
The clients can also use a security-free loan at the amount up to RUR 800,000 for the period up to 18 months.

Is there an opportunity to get a delay to pay for the loan?
Yes, the delay is possible for the period up to 6 months.

How long does it take to make a decision to issue a loan?
The decision on the loan application is being made within 1 working day after the submission of necessary minimum set of documents which as a rule are at hand.

What influences on the interest rate for the loan?
The final interest rate for the loan depends on the loan amount and period. Besides there are special possibilities for the Moscow Credit Bank (OJSC) clients which allow to decrease the loan cost and get favourable collaboration conditions for other bank products. One of the way to decrease the loan interest rate is to recommend the Moscow Credit Bank (OJSC) to your partners and counterparts.

What will be the final cost of the loan with interest, commission and other payments?
Actually provided that the interests and the loan portion (body) are monthly payed without delays the loan costs will be 9-13% per year from the security loan amount.

Shall be the guarantee cost be higher than the loan and if yes, how much?
Certainly. As the market security cost shall cover not only the loan portion (body) but also the loan interest and take into account the Bank expenses while selling the pledged property in case the borrower does not pay out the loan. In average the security cost shall be 30-50% higher than the loan amount.

What is a way out if there is a need in the car and goods provided as a security?

While providing a car as a security there is no need to keep it on the Bank parking area. You can use the car placing its transport means certificate at the Bank’ disposal. When the security is goods at circulation the requirement is the permanent remaint valued not less than the amount specified in the agreement on the goods at circulation. By this the loan secured by the property or goods will have no negative influence on your business.

Is it possible to change the security type within the loan active period on the borrower decision?
Yes, it is possible.

Is possible to get the loan in cash?
The loan is granted by placing the necessary funds on the borrower account at the Moscow Credit Bank (OJSC) or any other bank. The borrower can withdraw these funds in cash from the account according to the actual bank rates.

Is a business plan needed to get a loan?
There is no need to provide a business plan to get a loan within the Moscow Credit Bank (OJSC) small and middle business credit program. 

What is an advantage of the loans in foreign currency?
Presently the Moscow Credit Bank (OJSC) program provides an opportunity to issue loans in rubles, US dollars and Euros. If you company operates on international markets the foreign currency loans will help you to save both on the interest rate and on currency change difference which is unavoidable when crediting in rubles.

Copyright © Credit-Moscow Bank
Small Business Loans

Moscow: tel.: (495) 72-707-72; fax: 237-52-98; Address: 8, 6th Monetchikovsky Lane.
Saint Petersburg: tel.: (812) 635-75-75, fax: 310-13-69; Address: 54, Sadovaya Street.

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