Category: Corporate Banking

Small and Medium Business loan-Repo

Required documents

Official loan application. /Indicates the amount, interest, term and collateral of the desired loan/

Loan application / by bank form /
Resolution of the Board of Directors (Shareholders’ Meeting) on obtaining a loan. / Decision on the amount, interest, term, collateral of the requested loan and appointment of the person authorized to sign /
Copy of company certificate, copy of company charter / stamped by state registration office /

Loan for NBFIs

Benefits

Flexible and favorable

Loan for NBFIs

Terms and conditions

Loan for NFBI	MNT	USD	EUR	RMB	JPY
Amount	The amount of bank financing shall not exceed 80% of the total working capital. The maximum loan amount depends on the size of the business, capital and financial capacity.
Interest rate / monthly/	2.00%-1.60%	1.35%-1.00%	1.35%-1.00%	1.35%-1.00%	1.35%-1.00%
Interest rate / annually/	24.00%-19.20%	16.20%-12.00%	16.20%-12.00%	16.20%-12.00%	16.20%-12.00%
Term	Up to 36 months
Service fee	1% of the loan amount /maximum MNT 1,500,000/ or equivalent currency	0.5% of the loan amount /maximum USD 1,500 or amount equivalent to EUR, CNY, JPY
Penalty interest rate	Penalty interest rate /equivalent to 20% of base interest rate/ is added to the base interest rate
Fee for changing the original loan terms	0%
Grace period	Up to 12 months
Loan application fee	30,000 MNT
Credit recording enquiry fee /during loan analysis procedure/	Individual – MNT 1,000

Loan for NBFIs

Required documents

Official request/amount, interest, term and collateral pledged should be stated/
Loan Application / Bank’s application /
Resolution of the Board of Directors on obtaining a loan. / decision on the amount, interest, term, collateral of the requested loan and appointment of the person authorized to sign /
Copy of company certificate, copy of company charter / stamped by state registration office /
Copy of ID card of the person authorized to sign the loan agreement (founders, CEO, CFO, etc.), borrower’s application form (if legal entity)
Business licenses, plans and other documents
The purpose of the loan, contract, project, etc.
The market and competitor’s analysis
Tax reference
GCCA reference / in the name of the organization and shareholders /
Reference from GASR / on behalf of enterprises and major shareholders /
Financial statements of the company certified by the Audit and Tax Administration – / for the last 4 quarters, at the end of the last year/
Financial statements at the end of the year. These include: list of receivables, current assets, fixed assets, payables and liabilities and sales, unit cost, balance sheet for the last 1 year
Account statement / last 12 months /
Pledge of immovable property (if the pledged property is in the name of another organization, a copy of the company’s certificate, charter, decision and resolution authorizing to pledge)
Collateral historical and detailed reference
Pledge land’s certificate, contract and cadastral map
List and certificate of pledged machinery and equipment
Proof of tax payment in case of real estate purchase
Loan agreement and loan account statement if you have outstanding loans with other banks and NBFIs.
Other required additional materials

Commercial mortgage

Terms and conditions

Property	MNT	USD	EUR	RMB	JPY
Term	Up to 120 months
Amount	Up to 75 percent of the total contract pricing or equivalent in foreign currency up to 20 percent of the maximum equity
Interest rate /monthly/	2.00%-1.60%	1.35%-1.00%	1.35%-1.00%	1.35%-1.00%	1.35%-1.00%
Interest rate /annually/	24.00%-19.20%	16.20%-12.00%	16.20%-12.00%	16.20%-12.00%	16.20%-12.00%
Downpayment	Minimum 25%
Grace period	Depending on the loan purpose
Other terms	Currency conversion is possible every 6 months or 1 year /USD/
Application fee	30,000 MNT
Service fee	0.5% of the loan amount /maximum MNT 1,500,000/ or equivalent currency
Insurance	Purchased asset on credit must covered by comprehensive insurance. The client is responsible for the insurance premium.
Credit recording enquiry fee /during loan analysis procedure/	Individual – 1,000 MNT Corporate – 1,000 MNT

* Effective percentage rate /annual/: MNT 20.11%-24.95%

Commercial mortgage

Requirements

Running the business in the last 12 months and continuing it as a going concern
Good credit history and score and other evidence of ability to repay the loan
Collateral to satisfy the bank’s requirements
Other requirements from the bank on a case by case basis

Job support loan

Benefits

Borrower is enabled to maintain jobs, to obtain working capital necessary for the consistent operations of the business, and to have access in refinancing previous jobs supporting loan the borrower took from other bank.

Job support loan

Terms and conditions

Product terms	Job support loan
Loan amount /Securitization/	Up to MNT 500,000,000
Loan interest rate /annual/	3%
Loan term	Up to 36 months
Service fee	In case of new loan, it shall not exceed 1 percent of the loan amount /max. MNT 1,500,000/
Penalty interest rate	Penalty interest rate is equivalent to 20 percent of the base interest rate
Application fee	MNT 30,000
Other	Other requirements and conditions of the Bank of Mongolia
Credit recording enquiry fee /during loan analysis procedure/	Individual – MNT 1,000 Corporate – MNT 1,000

Job support loan

Requirements

The borrower must have run business operations inside Mongolian territory;
History of running the business in the last 12 months;
Good credit history and score and other evidence of ability to repay the loan;
Collateral to satisfy the bank’s requirements;
In case of a legal entity, the shareholder has not changed since the Government Resolution was issued on February 17, 2021;
The borrower must register the business as a value-added tax withholder or exempt from value-added tax;
To meet the requirements set forth in Articles 4.1.1 and 7.1 of the Law on Supporting Small and Medium Enterprises and Services in case of insufficient collateral to obtain a guaranteed loan from the State Property Committee;
Other requirements from the bank on a case by case basis;
Other requirements set by the Bank for the implementation of this agreement within the framework of loan operations procedures and instructions.

Job support loan

Required documents

The business profile;
Business license;
Original ID card of the borrower and its notarized copy, 1 passport-sized photo taken in last 6 months;
Certificates and documents of collateral;
Account statement;
Proof of loan purpose and related agreements;
Proof of credit history for the last 3 years, loan agreement, and proof of payment;
Other required additional materials.

Small and Medium Business loan-Repo /Export/

Terms and conditions

Terms	Product terms
Product	Small and medium business loans – Repo
Loan amount / securitization /	Up to 3,000,000,000 / Three / billion MNT
Loan interest rate /annual/	10.50% / Repo trading interest rate + not more than 4 percentage points /
Loan interest rate /monthly/	Up to 2 years
Service fee	10.50% / Repo trading interest rate + not more than 4 percentage points /
Increased interest	Equivalent to 20 percent of the principal
Application fee	30,000 MNT
Grace period	At least 6 months
Other	Other requirements and conditions of the Bank of Mongolia
Credit recording enquiry fee /during loan analysis process/	Individual – 1,000 MNT Corporate – 1,000 MNT
* -Product conditions will change from time to time according to the order and decision of the Bank of Mongolia.

Small and Medium Business loan-Repo /Export/

Requirements

Must meet the criteria set by the Bank of Mongolia, which provides the source of repo financing;
In accordance with Articles 4 and 5 of the Law on Promotion of Small and Medium Enterprises and Services, citizens and business entities with up to 200 employees and annual sales of up to MNT 2.5 billion are eligible;
Non-mining exports, processing industries and services *, wholesale and retail sectors with 200 or more employees;

Click HERE to get acquainted with the criteria and requirements set by the Bank of Mongolia.

Click HERE to see more questions and answers

Small and Medium Business loan-Repo /Export/

Required documents

Official loan application. / Indicates the amount, interest, term and collateral of the desired loan/
Loan application / by bank form /
Resolution of the Board of Directors (Shareholders’ Meeting) on obtaining a loan. / Decision on the amount, interest, term, collateral of the requested loan and appointment of the person authorized to sign /
Copy of company certificate, copy of company charter / stamped by state registration office /
Copy of ID card of the person authorized to sign the loan agreement (founders, CEO, CFO, etc.), borrower’s application form (legal entity)
Business licenses, business plans and other documents
Information on the purpose of the loan, contract, project, etc.
Information about the market and competitors
Tax reference
Definition from General Executive Agency of Court Decision on behalf of the organization and shareholders /
Reference from GASR / on behalf of enterprises and major shareholders /
Financial statements of the company certified by the Audit and Tax Administration – / for the last 4 quarters, at the end of the last year /
Detailed financial statements as of the end of the year. These include: List of receivables, List of current assets, Detailed list of fixed assets, Detailed list of payables and liabilities, Breakdown of sales, unit cost, balance sheet for the last 1 year,
Account statement / as of the last 12 months /
Pledge of immovable property (if the pledge is in the name of another organization, a copy of the company’s certificate, charter, decision and resolution to allow pledge)
Mortgage reference / historical, detailed /
Pledge certificate, contract and cadastral map
List and certificate of pledged machinery and equipment
Proof of tax payment in case of real state purchase
Loan agreement and loan account statement if you have outstanding loans with other banks and NBFIs.
Other required additional materials

Trade credit line

Benefits

Flexible and favorable terms

Trade credit line

Terms and conditions

Trade credit line	MNT	USD	EUR	RMB	JPY
Credit maximum	Depends on the size of the business, capital, financial capacity, and trade turnover.
Commercial credit line opening service fee / no service fee is charged for opening a line backed by term deposit as collateral /	1% of the line amount up to a maximum of 1,500,000 MNT	1% of the line amount up to a maximum of 1,000 USD	1% of the line amount up to a maximum of 1,000 EUR	1% of the line amount up to a maximum of 5,000 RMB	1% of the line amount up to a maximum of 5,000 JPY
Commitment fee/ annually/	0%-2.0%
Term of trade credit line	Up to 60 months
Fee for changing the original loan terms	0%
Application fee	30,000 MNT	10 USD	10 EUR	100 RMB	1,000 JPY
Credit recording enquiry fee /during loan analysis procedure/	Individual – 1,000 MNT Corporate- 1,000 MNT
Note: – If the interest rate of the external source line is 0%, the customer’s commercial loan interest rate may be 0%.

Pre-shipment loan terms:

Pre-shipment loan terms	MNT	USD	EUR	RMB	JPY
Maximum amount	Within the credit lines, the amount of trade agreements and transactions shall not be exceeded
Interest rate /annually/	Source cost + 2.0% -4.0%
Loan term (depending on product turnover)	Up to 60 months
Service fee	0%
Application fee	30,000 MNT
Full and partial prepayment fee	According to the terms of the foreign bank interest rate
Credit recording enquiry fee /during loan analysis procedure/	Individual – 1,000 MNT Corporate- 1,000 MNT
Note: The cost of resources includes tax costs associated with attracting external resources, interest and non-interest costs, and required reserve costs.