Sustainable & Green business loans
A green loan is a form of financing that enables borrowers to use the proceeds to exclusively fund projects that make a substantial contribution to an environmental objective.
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Investment loan Working capital loan Loan amount 10 Billion MNT 5 Billion MNT Intrerest rate *(yearly) 15.60% – 19.20% 15.60% – 19.20% Annual percentage rate (yearly) 16.77% – 20.98% 16.77% – 20.98% loan currency MNT MNT Loan term (monthly) Up to 84 months Up to 30 months Collateral Have collateral that meets the banks requirements Service fee 0.50% (of the approved loan amount) 0.10% (of the approved loan amount) Payment for amending the loan agreement 0.30% (one time from the loan balance) Application fee 10,000 MNT *Free of charge for loans ever 100,0 miilion MNT (0.00%) insurance Depending on the type of collateral, you are covered by insurance Grace Period Up to 1/3 of the total loan term or up to 24 months Up to 1/3 of the total loan term or up to 12 months - Be a Mongolian citizen or an entity registered in Mongolia that runs business operation in the territory of Mongolia
- Been stably running the business in the last 12 months and continue to pursue it
- Satisfy the financial ratios at an appropriate level as it is the bank criteria
- Collaterals shall meet the bank’s collateral requirements
- Shall not have any outstanding past due loans
- Shall not have any history of loans from banks and NBFIs classified as non-performing
- Others
Additional criteria:
- The main business activity must be included in the Green Taxonomy of the Bank of Mongolia;
- The main business activity and purpose of the loan must be “low risk” according to the environmental, social and environmental risk assessment of the Bank.
- The Green requirements of the Bank’s internal procedure for environmental, social and environmental risk assessment have been met depending on the level of risk.
- Lending activities are not included in the “List of Prohibited and Warning Activities” specified in the Bank’s environmental and social risk assessment procedure.
- Loan Application
- State registration certification of business entity and company charter
- Special operations license
- Resolution from Board of Directors, and minutes of Shareholders’ meeting evidencing the authorization of loan application
- Original or notarized copy of ID card of the authorized personnel and 1 passport-sized photo taken within the last 6 months
- Documents of the property to be pledged as collateral
- Audited financial statements, financial statements confirmed by the taxation office, and other documentation for proof of income and expense
- Documents evidencing the intended use of the loan, related agreements
- Proof of loan history, loan agreements and payment records of the past 3 years
- Others