Acquiring equipment on credit

Targeted programme of Rosselkhozbank “Credits secured by the equipment and/or machines being acquired”

Under this Programme, credits are provided to acquire the following types of new domestic- and foreign-made equipment and machines:

New equipment/machines being acquired under the Programme	Credit Period	Ratio (advance payment+credit), %
1) Russian-made self-propelled agricultural equipment, tractor trailers, and semi-trailers	up to 7 years	15 + 85
2) Motor vehicles for various applications, trailers, semi-trailers, buses
3) Russian-built trailed/mounted agricultural equipment	up to 5 years
4) Foreign-made self-propelled agricultural equipment, tractor trailers and semi-trailers	up to 7 years	20 + 80
5) Foreign-made trailed/mounted agricultural equipment	up to 5 years
6) Equipment for milk-receiving centres, mobile installations for milking into buckets	up to 5 years
7) Vegetable storage equipment
8) Self-propelled road construction equipment
9) Self-propelled utilities equipment
10) Equipment and gear for repairing and servicing agricultural and logging equipment	up to 5 years	40 + 60

New means unused machines/equipment whose date between manufacture and signing of a purchase contract does not exceed 2 years.

Used equipment acquired under the Programme	Credit period	Ratio (advance payment+credit), %
1) Self-propelled agricultural equipment, tractor trailers, and semi-trailers, whose period between manufacture and signing of a purchase contract is 2 to 3 years	up to 4 years	20 + 80
2) Self-propelled agricultural equipment, tractor trailers, and semi-trailers whose period between manufacture and signing of a purchase contract is 3 to 4 years	up to 3 years	30 + 70

Used means the following equipment: equipment sold by next after the first user or equipment sold to a first user, which equipment has not been used and whose period between manufacture and the signing of a purchase contract exceeds 2 years.

The condition of credit secured by used equipment is the mandatory signing of an Agreement for securing the performance of obligations. This Agreement provides for a mechanism of equipment buy-back by the seller from the borrower. If the used equipment is acquired from a foreign seller, the buy-back (re-purchase) mechanism shall not apply.

Advance payment shall be made from the borrower’s own funds in the form of cash with confirmation of this fact in writing by the seller to the Bank.

The main credit collateral is the pledge of ONLY such equipment/machines as are being acquired.

Extra collateral is surety in compliance with requirements of the Bank’s internal regulations.

Payment of the credit interest shall be made on a monthly basis or by quarterly installments.

Grace period for repaying the basic amount of the credit: for new equipment – up to 12 months, for used equipment: 2 to 3 years old – 9 months, 3 to 4 years old – 6 months.

Short-term credit to sellers on conditions of the targeted programme for acquiring equipment/machines from Russian and foreign manufacturers.

Money- and note-backed crediting of borrowers at low interest rates for acquiring the Bank’s promissory notes for settlements with the sellers over equipment being supplied.

Subsidising is envisioned for certain types of equipment/machines by the Russian Federation Government decree No. 1460 of 28 December 2012 whereby part of the interest expenses on credit for acquiring agricultural equipment/machines may be refunded