KHAN BANK STARTS GRANTING EMPLOYMENT SUPPORT FUND LOANS

Ulaanbaatar, /MONTSAME/ Under an agreement, the Khan bank has granted the right to disburse Employment Support Fund loans with 1.25% interest rate per month and 12-month tenor in 16 provinces and Baganuur, Bagakhangai, two remote districts of Ulaanbaatar with total funding of MNT 5 billion.
The agreement was established December 29, 2009 between the Khan bank and the Labor and Welfare Authority (LWA) after a successful participation in "Small loan program designed for unemployed or individuals, informal workers, herders that wish to operate business in the forms of private, family business, collective or partnership” tender announced by Ministry of Social Welfare and Labor on November 19, 2009.
The bank has on-lent Employment Support Fund loans totaling 10.8 billion MNT since 2006 to date, thereby successfully supporting a creation of 15,834 jobs in Ulaanbaatar and rural areas.
Number of borrowers who obtained Employment Support Fund loans from the bank has reached 9,000 in total, including 4,600 unemployed individuals, 2,000 herders, 2,000 informal workers, and 250 business entities. 7.8% of all borrowers were ger (national dwelling) district residents while 1.5% physically challenged (disabled) individuals respectively.
Employment Support Fund loan limit size is determined by means of equating MNT 1,000,000 with every new job created. Maximum loan amount available for individuals is MNT 5 million and while business entities may access a loan up to MNT 10 million as part of the program.
With 485 branches and sub branches nationwide, Khan bank offers a variety of low interest project loans for supporting small and medium enterprises and promoting job creation in conjunction with foreign and domestic organizations. At the moment, the bank is offering over 10 types of the loan.