Interest rates referred to under the heading of terms and conditions is fixed, however, as the amount of interest the customer has to pay reduces with repayment of the principal, the effective rate of interest goes down.

Conditions of the loan:

Amount – USD 2000

Term - 12 months

Interest rate - 2,5 % per month (30 % per annum)

 

Repayment months	Monthly payment
	Principal amount	Interest payment	Total
1	145	50	195
2	149	46	195
3	152	43	195
4	156	39	195
5	160	35	195
6	164	31	195
7	168	27	195
8	172	23	195
9	177	18	195
10	181	14	195
11	186	9	195
12	190	5	195
Total	2 000	340	2 340

Result:

Initial loan amount – USD 2000

Total interest paid – USD 340

 

Effective rate of interest:

For 1 (one) year - 17 % (340 / 2 000 * 100 %)

For 1 (one) month - 1,4 % (17 % / 12)

Micro-Credits Program:

• Immovable property
• Cars and vehicles
• Fixed assets used and purchased for business purposes
• Jewelry
• Securities
• Household items
• Turnover assets
• Undertakings by 3rd parties

SME Financing:

• Immovable property
• Cars and vehicles
• Fixed assets used and purchased for business purposes
• Jewelry
• Guarantee issued by a leading local or foreign bank

Note: in accordance to types of collateral shown in the table, you can use various combinations of individual types of the collateral. Such applications will be considered by the Bank on a case-by-case basis!

• Good and profitable business
• Accurate description of the project
• Professionalism of the management
• Access to information (submission of documents required by the Bank)
• Availability of an appropriate collateral
• Absence of negative information and absence of bad credit history
• At least 3-12 months of experience in the said area of activities (depending upon amount and designation of the loan)
• Income generation by the company for the last 2 quarters
• Location of main place of activities in the Azerbaijan Republic
• Location of collateral in places where there is an office of “Bank of Baku”, etc.