Soft loan

Directions of financing of Agricultural Development Projects and Programs by Agrarian Credit and Development Agency

  •  Financing projects regarding improvement of processes of sales and production,processing, storage of agricultural products;
  •  Financing innovative projects regarding agrarian development of regions;
  •  Financing projects regarding improvement of supply of agricultural equipment,as well as their discount sale and leasing;
  •  Financing projects in the sphere of development of livestock farms using public-privatepartnerships;
  • Financing pilot projects of the Ministry of Agriculture of the Republic of Azerbaijan.

Loan limit:

Business subjects can be provided with soft loans at the expense of the
Agency funds in the following limits:

  • Up to 5 000 manats - microcredit;
  • From 5 001 manats up to 30 000 manats – small-sized credits;
  • From 30 001 manats up to 100 000 manats – medium-sized credits;
  • From 100 001 manats up to 200 000 manats – large-scale credits;
  • Up to 1 000 000 manats - credits for purchasing agricultural equipment.


Loan period:

  • For microcredit - up to 2 years;
  • For small-sized and medium-sized credits - up to 3 years;
  • For large-scale credits - up to 5 years;
  • For breeding animals purchased with concessional loan terms – up to 3 years;
  • For other agricultural equipment – up to 3 years;

Grace period for credits is defined as following:

  • For microcredit - up to 12 months;
  • For small-sized and medium-sized credits - up to 18 months;
  • For large-scale credits - up to 24 months.
  • The soft loan period does not apply to subsidized agricultural equipment.
  • During the grace period, the business entity pays only interest and does not make any payments on the principal debt.
  • Business entities pay interest and principal debt amount in equal installments on the first working day of each month beginning from the next month upon the expiration of the grace period.

Interest rates for issued loans:

  • The Agency transfers its funds to Participating Financial Institutions at a rate of 2% per annum.
  • The Agency will provide the Participating Financial Institutions with 2% annual interest rate. The maximum annual interest rate applied by the Participating Financial Institutions to credit funds of the Agency (including the 2% stipulated in this paragraph) shall not exceed 7 percent.