Those wishing to participate in programs/projects must submit applications only in Georgian.

Preferential agro-leasing component’s sub-component for agricultural and timber production mechanization

1. Preferential agro-leasing within the subcomponent shall be issued only for the purchase of agricultural machinery and implements and / or timber-making machinery and implements (hereinafter referred to as the “Equipment”) (compliance of timber-making equipment and implements must be confirmed by a certificate issued by the LEPL National Forestry Agency), which can be purchased only by non-cash payment.

2. Leasing of an implement within the subcomponent is allowed only if the beneficiary has the appropriate equipment in the registered ownership (it must be confirmed by appropriate documentation) or if the purpose of the issued agro-leasing is to jointly lease the implement (s) of the relevant equipment (s).

3. Equipment leasing within the subcomponent can be obtained in the local market (from an individual entrepreneur and / or legal entity registered in Georgia) or through import.

4. The purchased equipment must be new, except for equipment acquired from LLC "Agricultural Logistics and Services Company" (ID: 206348736) and/or LLC "Agroservice Center" (ID: 406321065). Specifically, the equipment must meet the following two conditions:

a) At the time of purchase, the equipment must be covered by a valid warranty issued by the manufacturer, except for equipment acquired from LLC "Agricultural Logistics and Services Company" (ID: 206348736) and/or LLC "Agroservice Center" (ID: 406321065).

b) The equipment must have been manufactured no more than three calendar years before the date of purchase, except for equipment acquired from LLC "Agricultural Logistics and Services Company" (ID: 206348736) and/or LLC "Agroservice Center" (ID: 406321065).

5. The following persons can use preferential agro-leasing within the subcomponent:

a) Natural citizen of Georgia (from 7,000 GEL to 75,000 GEL);

b) Individual entrepreneurs or legal entities registered in Georgia

6. (within the limit        specified in the subcomponent, in case of any amount).

7. Within the subcomponent, the preferential agrocredit ranges from 7,000 GEL to 1,500,000 GEL. The total amount of preferential agrocredits and agroleasing obtained by a beneficiary under the "Preferential Agrocredit Project" for agricultural and forestry mechanization within the subcomponent for fixed assets, as well as under the subcomponent for agricultural and forestry mechanization within the preferential agroleasing component, must not exceed 1,500,000 GEL.

8. Under this subcomponent, the agency will co-finance the loan interest rate for up to 48 months. The co-financing will be provided alongside the beneficiary’s payments at an annual rate of 8% of the principal loan amount.

9. Loans issued within this subcomponent are not subject to secondary collateral.

10. The loan interest rate is determined based on its amount and may be either fixed or floating.

a) In the case of a fixed interest rate, the financial institution must establish the following annual interest rates:

Loan volume Interest rate
 From 7,000 GEL to 150,000 GEL   inclusive
no more than 18%
From 150,001GEL  to 600,000 GEL  inclusive
no more than17%
From 600,001 GEL  to 1,500,000 GEL  inclusive
no more than16%

 

b) In the case of a floating interest rate, the following annual interest rates must be set by the financial institution:

Volume of the loan
Interest rate
From 7,000 GEL  to 150,000 GEL  inclusive
Not more than the refinancing rate set by the National Bank plus 8%
From 150,001 GEL  to 600,000 GEL  inclusive
Not more than the refinancing rate set by the National Bank plus 7%
From 600,001 GEL to 1,500,000 GEL inclusive
Not more than the refinancing rate set by the National Bank plus 6%

14. The program participant is obligated to purchase/register the necessary equipment within 6 months from the date the loan is issued by the bank. Additionally, within 7 months, the participant must submit an audit report to the financial institution to verify the loan’s intended use (excluding refinanced loans). For loans approved up to 500,000 GEL, the audit report must be issued by an entity listed in the Register of the Accounting, Reporting, and Auditing Supervision Service of the Ministry of Finance of Georgia with I, II, III, or IV category. For loans approved from 500,001 GEL, the audit report must be issued by an entity from the same register with I, II, or III category, or by the Levan Samkharauli National Forensics Bureau. If the audit report is not submitted within 7 months, the agency suspends co-financing. If it is not submitted within 12 months, the agency terminates co-financing. In such a case, the agency is authorized to demand full reimbursement of the co-financed amount. The loan funds may be used to cover the cost of the audit report, but the amount must not exceed 1% of the loan and must not exceed 15,000 GEL.

15. The equipment purchased under the subcomponent loan must be legally pledged as collateral in favor of the lending financial institution for the entire co-financing period.

16. During the agency’s co-financing period, the participant must not sell the equipment purchased under the subcomponent or take it outside Georgia.

17. Loans for forestry equipment have been issued since May 1, 2021, but only to legal entities and individual entrepreneurs registered in the following municipalities: Akhmeta, Dedoplistskaro, Kvareli, Telavi, Tianeti, Chokhatauri, Lanchkhuti, and Ozurgeti.

18. The subcomponent prohibits issuing loan funds in cash, except when the loan is used for importing equipment or implements. In such cases, cash disbursement is allowed only for transportation and customs clearance expenses.

19. Any conditions not covered by this subcomponent are regulated by the Fixed Asset Component.

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