The maximum amount of interest-free preferential credit for family entrepreneurship in Uzbekistan is increasing from 33 million to 100 million soums. This is stipulated by the presidential decree issued on April 3rd.
Starting from April 1st, 2024, credits under the family entrepreneurship program will be available to self-employed individuals, excluding those who have a main job. They can receive up to 33 million soums, and after one year, an additional 50 million soums on a revolving basis, subject to the effectiveness of their entrepreneurial activities, targeted use of the loan, and if necessary, with a petition from a group of at least 3 citizens.
These credits can be used in various areas of household farming, including poultry farming, rabbit breeding, livestock farming, beekeeping, fish farming, and compact greenhouse cultivation.
Owners of household lands with more than 10 acres and tenants will be able to take out a preferential loan of up to 50 million soums without collateral. For the establishment of compact greenhouses on 10 acres and the organization of fish farming, up to 100 million soums will be allocated without collateral.
Moreover, cash will be provided for setting up businesses on household lands using internal resources, to citizens willing to engage in entrepreneurship, for the construction of greenhouses, livestock breeding, and seasonal crop cultivation on household lands. This requires a bank guarantee attached to the loan and the assistance of a district governor's assistant.
As of January 1st, 2024, credits under family entrepreneurship development programs will be provided for a period of 3 to 4 years (previously up to 3 years), including a grace period of 6 months to 1 year (previously up to 6 months), with an annual interest rate exceeding the Central Bank's base rate by 4 percentage points.
Preferential credits at a 14% annual interest rate will be provided to the population and entrepreneurs expressing a desire to engage in family entrepreneurship through specific work activities, for a period of 3 to 4 years (previously up to 3 years), including a grace period of 6-12 months (previously 3-6 months).
Furthermore, the restriction on cash withdrawals of up to 10 million soums of the loan, which are transferred to the borrower's cards upon the assistant district governor's recommendation (up to 20 million soums for craftsmen), has been lifted.
The Committee for Competition Development and Consumer Rights Protection, together with the Chamber of Commerce and Industry and the Tax Committee, has been tasked with ensuring transparency in the supply of products (services) through loans within the programs, to establish control over the formation of a competitive environment on the free marketplace, to prevent artificial price hikes, and to ensure timely and quality product (service) delivery by supplier companies.
The Agency for Mahalla Development and Entrepreneurship, in collaboration with authorized banks, must implement a mechanism for monitoring the targeted use of loans in mahallas from July 1st, 2024, as well as evaluating their effectiveness.
Starting from April 1st, the funds available and those generated from the repayment of previously allocated loans under the "Craftsmanship Development", "Support for Women's Entrepreneurship", "Support for Youth Entrepreneurship", and "Yoshlar - kelajagimiz" programs are being directed towards the "Every Family - Entrepreneur" program.
In December, the president approved a proposal to provide loans to self-employed individuals who are "taking their first steps in business". By the end of last year, 2.4 million people in Uzbekistan had registered as self-employed. The preferential credit was planned to be transferred to their card upon payment of an annual social tax of 340,000 soums.
