Loans

FORA issues micro loans to entrepreneurs and micro enterprises that have limited own resources and a considerable need to increase working capital and to purchase fixed assets for business development.

Loans are issued for the development of the following types of businesses:

• retail and wholesale trade;
• services (including intermediary and transport services) 
• production, except for agricultural production but including processing of agricultural produce.

Borrowers are required to:

• be registered as entrepreneurs and to have been engaged in business on a continuous basis for at least three months; 
•  invest their own funds in fixed assets and goods in turnover; 
•  prove their ability to repay loans in a timely manner.

FORA's distinctive features include:

•  focus on micro finance services: the average loan size does not exceed $870; 60% of the loans are $630 or less; 
•  innovative approach to security for loans: wide use of group loans technology which implies solidary guarantee of three or more borrowers; 
•  flexible approach to clients, based on the principle: simple, prompt, efficient; 
•  loan amount and repayment schedule are based on the actual needs of the client; 
•  business plans are not required; · loan processing and disbursement take 5 days at the very most; 
•  loan procedures are red-tape free, the minimal number of documents is required; 
•  if necessary,consulting services are provided by the loan officer, who tracks the client's business.