The Electronic Credit Platform has made it easier for entrepreneurs to apply for loans
As reported, the Ministry of Economy created an Electronic Credit Platform (www.e-edf.gov.az) for the online reception of applications for new business loans under the loan-guarantee mechanism and launched it on June 30. At present, loan applications are processed in a short period of time, applications are received, the Entrepreneurship Development Fund of the Ministry of Economy and credit organizations conduct analysis and deliver decisions to entrepreneurs through this platform.
As of July 22, 1447 applications for new business loans worth 495 million AZN were received through the Electronic Credit Platform. A number of appeals have already been considered and decisions have been made on the allocation of loans totaling 5.6 million AZN for 46 appeals. The rest of the applications are currently being considered and entrepreneurs will be informed about the results through the platform within a specified period (7 and 10 working days for fast and traditional loans, respectively).
Providing business loans through the Electronic Credit Platform creates a number of advantages for entrepreneurs. Thus, entrepreneurs apply for a loan online, their applications are considered simultaneously by the Ministry of Economy and the authorized credit organizations, as well as the opportunity to monitor the status of applications in real time. The application of the Electronic Credit Platform also provides flexibility and transparency in obtaining loans, equal conditions for entrepreneurs, creates a healthy competitive environment, expands access to credit for entrepreneurs, saves time and costs.
As of today, an additional new opportunity has been created for entrepreneurs on the Electronic Credit Platform. Thus, entrepreneurs can now choose 3 credit institutions to obtain business loans and apply to 3 credit organizations at the same time. This will not only increase the access of entrepreneurs to loans, but also have a positive impact on the formation of a healthy competitive environment among credit institutions.
t should be noted that under the mechanism of state guarantees for business loans and interest subsidies on these loans, up to 60% of the new business loan portfolio in the amount of 500 million manat is guaranteed by the state, as well as 50% of the annual interest rate on these loans. This mechanism applies to loans with a term of up to 3 years and an annual interest rate of no more than 15%. The grace period for these loans is up to 12 months. During the grace period, the business entity must pay only the interest debt.
Entrepreneurs should use their loans for their intended purpose and not direct them to the conclusion of other credit obligations.