Due to Oschad's cooperation with the Fund for Partial Credit Guarantee in Agriculture, farmers will be able to receive loans on favorable terms

Under the new program of financial support for agricultural business, Ukrainian farmers will be able to get a loan from Oschadbank under the guarantees of the Fund for Partial Credit Guarantee in Agriculture. These guarantees cover 50% of the amount of financing provided, i.e. halve the loan collateral requirements. This will allow agricultural producers to attract larger loans even if their own property is insufficient to secure their loan obligations. Moreover, if additional preferential programs are applied, farmers will receive financing with minimal or no collateral. This was announced today in Kyiv at a solemn presentation of the program with the participation of government officials, international partners, representatives of the Fund and Oschadbank.

Key program parameters:

Borrowers: micro, small and medium-sized enterprises, individual entrepreneurs operating in the field of agriculture, who own and/or use no more than 500 hectares of agricultural land.

Guarantee: 50% of the loan amount.

The maximum loan amount secured by the guarantee is UAH 30 million.

Purpose of the loan:

• acquisition of land plots (if a loan is granted for the purpose of acquiring an agricultural land plot, the Fund provides

guarantees only if such land plots are pledged to the bank);

• investment needs (purchase or repair of fixed assets, including agricultural machinery and commercial premises, in

particular, to comply with modern environmental standards and improve working conditions and safety);

• replenishment of working capital.

Loan term:

• up to 3 years for working capital replenishment;
• up to 7 years for investment loans;
• up to 10 years for the purchase of agricultural land plots.

"The recovery and development of the agricultural sector requires substantial financial support. Another element that will help expand access to finance is our cooperation with the Fund for Partial Credit Guarantee in Agriculture, which will provide a guarantee for credit resources, i.e. reduce collateral requirements. Agricultural enterprises will be able to increase their land bank, purchase fixed assets or replenish working capital. Guarantees from the Fund will reduce the risks for the bank when lending to small agricultural companies, which will significantly improve the availability of bank lending for these companies," said Natalia Butkova-Vitvitska, Oschadbank Management Board Member in charge of MSMEs.

Oschad ranks first in the market by the number of loans to the agricultural sector. To meet the needs of farmers, including the sowing campaign, in 2023, Oschadbank provided 1,820 loans totaling UAH 6.9 billion. Almost 30% of the financed clients applied for the first time, as Oschad had no restrictions on land bank and ownership, and liberalized internal lending processes. 

Supporting agrarian business as part of ensuring the country's food security is one of the strategic directions of Oschadbank's work during the full-scale war.

For more information about this product, please visit Oschadbank branches or call the hotline for business clients: 0 800 219 800.