According to the Regulation on procedure for allocation of microcredits from commercial banks to newly registered, individual entrepreneurs and family business operating without the formation of a legal entity, the applicants can receive microcredits from the date of state registration for 6 months in the amount of 100 sizes of minimal salary in condition of payment, urgency, security, targeted use and recoverability.

The microloans are issued for three years with interest rate not higher than refinancing rate of the Central Bank of Uzbekistan with one-year grace period. If the microloan is issued due to preferential crediting fund, the interest rate is set at 50% of refinancing rate of Central Bank of Uzbekistan.

The Central Bank said that interest rates on loans will be decreased automatically when the regulator cuts rate of the refinancing rate.

The businesses will start to repay microcredit from next month after end of the grace period. During the grace period, the businesses pay only interests, the Central Bank of Uzbekistan said.

As collateral for microcrediting, property, securities, guarantees of a bank, an insurance organization or a third party, insurance policy are accepted. In addition, the businesses can use purchased goods as the collateral, which were bought for microloan issued to them. Self-governing bodies also can be guarantors on microloans of the businesses if the microloan is equal to 60 sizes of minimal salary.

The banks will consider applications for microcredits within 3 working days. At the same time, for greater convenience, borrowers can submit applications in online moder. Microcredits will be allocated in a non-cash form by wire transfer.