MFI Report

State Fund for Small Business Support of Voronezh Region was established by Administration of Voronezh Region. Fund provides micro-loans to private entrepreneurs and small business, which do not have access to bank loans due to small and unattractive for banks scales of activities, lack of credit history and acceptable guaranty. Loans of up to US$ 3000 are provided to businesses for the period of up to six months. The interest rates on the loans depend on the type of the loan (loan for group of entrepreneurs or for an individual entrepreneur). The acceptable collateral includes guaranty of a vehicle, equipment or other property belonging to a borrower or the third party, as well as personal or organizational security. Being the hub of regional microfinance network, consisting of 13 MFIs, the Fund is responsible for development of the network. The key challenge the Fund faces is insufficient financial resourses for microfinance activities. Hide