Loans in Ukraine - myths and reality
LOANS IN UKRAINE - MYTHS AND REALITY
Many depositors ask us why we do not take loans. Let's try to answer in detail all at once.
As soon as in January 2020 the government loudly announced the “5-7-9 Affordable Loan Program”, we immediately turned to Ukrgasbank with the project.
In response, we received a seven-page list of what “certificates for certificates that we have a certificate” should be prepared.
Thank you, the honest manager said bluntly - your deposit will not suit us - because because. Otherwise, they would have messed up the paper for six months to get - no, not a fabulous loan, but a polite refusal.
In private conversations with bankers, only one thing is heard - this program does not work, and if anyone has received it, then there is a huge rollback. And the government is already filling tanks further - up to one percent per annum for those producing medicines.
Ahaha, so we produce medicinal herbs - where is our credit? Maybe one of the contributors can help us? Or will he take such a loan for our land on himself and we will grow together on our land? – We are ready to cooperate!
Okay, so what's the reality? An interesting example came across the other day. The online store sells a MacBook laptop - 24.899 hryvnia. An installment plan for a year is immediately offered with a final price of 33.200 UAH. Plus, for sure, at least another 1% commission.
Total - 33.532. We get 34,6% per annum - that's the rate.
See for yourself online store “AVIC”
Now about our business.
To get, say, 1 million hryvnias, we need:
1. Prepare standard documents, for example, the company “A-Project” asks 75.000 hryvnias for this
2. Make an assessment of the collateral with an appraiser accredited by the bank - at least UAH 20.000.
3.Insure the deposit - about 20.000 hryvnia
4. Notary services - about 10.000 hryvnias
But that's not all. As we can see, the effective rate for consumer loans is 36%, so it is reasonable to expect at least 25% for secured commercial loans.
The period from sowing to the first sales (we are talking about the spring, spring period, winter, winter is even sadder) - 4 months. So, given that the monthly interest will be UAH 21.000, we will need to set aside UAH 84.000 from the loan body.
In total, we will get to use instead of a million 1000 000-75.000-20.000-20.000-84.000-10.000=791.000 UAH
And we will return 1250 000 UAH. Thus, the effective interest rate will be 58% per annum. Is it worth the crazy fuss with meaningless loan papers at such a rate, and even with collateral? But bankers through intermediaries, the so-called. "Consultants" often take kickbacks - 5-10 percent. And the rate becomes (1250-000):691= 80%yearss
NO! We will prefer to take money from like-minded people and earn money together, without enriching various loafers and hangers-on, whose function in the production process is zero.
Do you have other numbers? Another opinion? Comment!
“The global goal of the project is monetization and capitalization of the site to the level Holland"