Green Business Loan Secured by a Credit Guarantee Fund

Service condition

Green Business Loan by Credit Guarantee Fund with Asian Development Bank
Loan Amount	MNT 2.0 billion
Loan interest rate	10.0%
Loan term	Up to 60 months
Total guarantee amount per customer	Up to 60 months /MNT 1.2 billion/
Additional Income	20%
Loan grace period	Up to 3-6 months
CGF application fee	MNT 50 000
CGF fees	Paid annually based on the outstanding balance of the guarantee - 1%
Commission fee	Refer to a general requirements of interest & fees
Amount of refinancing	Up to 50% of total loan amount

Requirement

SME Certification:
Must meet the definition of SMEs under the Law on SMEs of Mongolia.
Must hold a certificate issued by the Ministry of Food, Agriculture, and Light Industry (Link).
Business Operations:
Business must have been operational for at least 1 year.
Collateral Support:
Must be in need of a loan but lack sufficient collateral.
Credit History:
No overdue or non-performing loans in the 6 months prior to submitting the project to the Loan Guarantee Fund (LGF).
Project Proposal:
Submit a written project proposal detailing loan financing activities.
Compliance with Laws:
The project must comply with Environmental, Health, and Safety legislation.
Activities must not be listed under the "List of Prohibited Activities."
Additional Requirements: Must meet criteria specified in TDB's Operational Instructions for Small and Medium Loans and Operational Instructions for Corporate Loans.

Required document

Loan Application: Completed application form.
State Registration Certificate: Official registration certificate of the company.
Company Charter: Copy of the company’s charter.
Board Resolution: Resolution from the Shareholders’ Meeting or Board of Directors authorizing borrowing and pledging the company’s real estate.
Company Information: Overview of the company and its operations. Copy of ID and resume of the company’s executive officer.
Project Presentation: Presentation of the implementation project (template available from the bank branch).
Financial Statements: Financial statements for the last 1–2 years.
Permits and Licenses: Permit and special operations license (if applicable).
Collateral Documentation:
Documents related to business operations.
Collateral certificate, certificate of land title, land ownership certificate, contracts, cadastral map, and power of attorney (if necessary, original copy).
Financial Proofs: Basic documents proving income, expenses, payables, receivables, and financing.
Additional Documents: Any other documents required by the bank.

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