Lending to small and medium-sized enterprises (SMEs) is one of the paramount

tasks of the nationwide importance and one of the priority tasks for Russian

Agricultural Bank.

Russian Agricultural Bank offers loans to farmers, individual entrepreneurs,

agricultural credit and consumer cooperatives, and to other kinds of small and

medium enterprises.

The Bank offers loans for business development and business expansion, equipment

and machinery purchase, mortgage loans, working capital replenishment.

Loans to SMEs are extended directly to SMEs or to credit consumer cooperatives

with the purpose of their further allocation to small enterprises and to personal

household plots owners.

Lending to Small Business in the Rural Areas

Russian Agricultural Bank is an expert in lending to small businesses in rural areas.

The Bank offers a wide range of products and services with both standard and

preferential terms.

Loans for the current operations are extended for the current needs of the

clients like purchase of fodder, fertilizes, payment for insurance premium.

Loans for investment purposes are granted for financing of expenses on

building, reconstruction and modernization of production, purchase of transport,

equipment, agricultural animals, introduction of new technologies to different

agribusiness sectors. The loans are extended in the form of:

• standard loan and credit line;
• individual repayment schedule based on the business process;
• opportunity of grace period for the principal loan repayment;
• interest repayment schedule with monthly/quarterly payments.

Borrowers are eligible for the partial interest repayment in the form of subsidies in

accordance to the Government Decree No90 dated 04.02.2009.

Lending to Agricultural Consumer Cooperatives

Agricultural consumer cooperative is an organization established by agricultural

producers and/or personal household plots owners build upon optional membership

for joint business activity, based on alliance of the material equity contributions and

with the purpose to satisfy material and other requirements of the cooperative

members.

Agricultural consumer cooperatives fulfill the following tasks:

• procurement of agricultural production with material and technical resources;
• processing of agricultural production;
• sale of agricultural production;
• providing other services to the cooperative members.

Agricultural credit consumer cooperatives fulfill the following tasks:

• saving of monetary funds;
• financing of cooperative members by loan money.

Towards the above listed tasks Russian Agricultural Bank provides lending to

agricultural credit consumer cooperatives and to agricultural consumer cooperatives

of first and second levels, both operating and newly established.

At that both agricultural credit consumer cooperatives and agricultural consumer

cooperatives offer a wide range of credit products stipulating standard and favorable

lending conditions, among which the borrower can find the most suitable.

Agricultural consumer cooperatives who borrowed funds from the Bank and those

members of agricultural credit consumer cooperatives, who have received a loan

from the cooperative, are eligible for the partial interest repayment in the form of

subsidies in accordance to the Government Decree No90 dated 04.02.2009.

Settlement and Cash Services

Russian Agricultural Bank offers a wide range of settlement and cash services for

corporate customers and individual entrepreneurs.

In the Bank a client can open bank settlement account in Russian Rubles and in

foreign currency; bank account of a layer who have founded a legal office, court-

appointed manager, notary officer in Russian Rubles; special account of the

borrower in Russian Rubles; special account opened for the paying agent

(subagent) in Russian Rubles; special account of the vendor in Russian Rubles;

special brokerage account in Russian Rubles; special account for the housing and

utility enterprises in Russian Rubles.

The Bank’s specialists are consulting clients with respect to all of the Bank’s

products and services. The settlement and cash services are client oriented and the

Bank constantly develops system of distant banking services.

Payroll Card Programs

Russian Agricultural Bank offers corporate customers payroll program under which

monetary funds are transferred to the Bank, and then RusAg allocates wages to the

employees of the company. This allows the company to:

• minimize costs related to the salary payment;
• minimize cash collection costs;
• protect the confidentiality of salary payment;
• get an opportunity to pay bonuses, premiums and other types of material remuneration to the employees.

Deposits for Corporate Clients and Individual Entrepreneurs

The Bank offers a broad set of deposits for corporate customers and individual

entrepreneurs, for placement of temporarily disposable monetary resources.

Asset management companies of non-state pension funds are offered to open term

deposits in the Bank.

Russian Agricultural Bank offers deposits with flexible terms, competitive interest

rates and with possibility to choose interest repayment period – monthly, quarterly

or annually.

State Support

State support for SMEs envisages:

• sureties for banking loans, which allow SMEs to receive a loan without sufficient collateral;
• microfinance;
• interest-free loans;
• grants for new business launch for entry-level entrepreneurs;
• financial support stipulating that SMEs are eligible for interest rate subsidies;
• other types of state support.

The Bank Partners for Small Business Lending Development in the Rural

Areas are:

• Guarantee funds;
• Insurance companies;
• Registered appraisers;
• Suppliers of equipment and machinery;
• Unions and associations of agricultural producers.