Sber welcomes 50+ applications under new soft lending program for businesses with 3%interest rate
Sberbank is registering first applications from businesses seeking soft loans at 3% under the new government lending program applying to the industries that have been affected by COVID-19 the most. First days into the program, customers have submitted over 50 applications to the bank.
Since the very first days of the pandemic, Sber joined the stakeholders designing crisis response measures for businesses. After that, once the measures were designed unprecedentedly fast, Sber became their ultimate vehicle. So it’s no surprise that we’re being addressed by the customers who have learnt about the new lending initiative. Within a few days, we’ve received over 50 applications topping an aggregate of some RUB100 mn. The signing of lending agreements is scheduled to start on March 9, as the government decree suggests. We expect to provide over RUB100 bn in financing to program participants.
Deputy Chairman of the Executive Board, Sberbank
According to our estimates, our FOT 3.0 initiative will be taken advantage of by some 75,000 businesses that have 1.5 million employees. According to the terms of the new program, loans can be taken out by companies and sole proprietors that work in one of the reviving industries of Russia, which include food services, culture, sports, entertainment, event planning, and tourism.
Minister of Economic Development of Russia
According to the terms of the FOT 3.0 (Payrolls 3.0) program, the interest rate on a loan is 3%. While a loan agreement is valid, the borrower must maintain its employee rate at 90%. During the first six months after the loan is issued, the borrower does not need to repay the principal and interest, and over the next six months this can be done in equal monthly installments. Soft loans can be taken out by businesses of any size from among the least recovered industries.