Developing domestic trade, improving entrepreneurs’ access to financing and creating favourable conditions for sustainable business growth are important priorities for economic development. To support businesses operating in this sector, a government mechanism is available to subsidise part of the interest rate on loans obtained for investment purposes and working capital replenishment.This support instrument is designed to reduce the financial burden on entrepreneurs, facilitate the implementation of new projects and strengthen the financial sustainability of existing businesses.

Loan Amounts and Subsidy Periods

The maximum loan amount depends on the location of the project. For projects implemented in cities of regional significance, the loan amount may not exceed KZT 3 billion. For projects in single-industry towns, small towns and rural settlements, the maximum loan amount is KZT 1.5 billion.The subsidy period depends on the purpose of the loan. Loans intended for investment purposes may receive subsidies for up to five years, while loans used to replenish working capital may be subsidised for up to three years. These timeframes allow entrepreneurs to plan financing according to their business needs and operational requirements.

How Interest Rate Subsidies Work

The nominal interest rate is calculated as the base rate of the National Bank of the Republic of Kazakhstan plus four percentage points. The government subsidises 40% of the nominal interest rate, while the entrepreneur pays the remaining portion. The interest rate payable by the domestic trade business must not be lower than 12.6% per annum.This mechanism helps reduce borrowing costs and makes financing more accessible to eligible businesses. However, applicants must also take into account the programme’s eligibility criteria and specific restrictions.

Eligibility Requirements and Restrictions

Eligible participants include individuals and legal entities engaged in domestic trade in accordance with the Law of the Republic of Kazakhstan “On Regulation of Trading Activities.”Government subsidies and guarantees are subject to certain restrictions. They are not available for projects involving shopping and entertainment centres, or for projects implemented in the capital and cities of national significance.In addition, borrowers with loans exceeding KZT 500 million are prohibited from paying dividends. Refinancing of existing loans is not предусмотрено under this support mechanism.

Entrepreneurs’ Obligations

Receiving government support also entails certain commitments. For investment projects, the recipient is required to increase tax payments by 15% after two financial years have elapsed from the date the government support measure was granted. Entrepreneurs are therefore advised to assess their project’s financial performance and take this requirement into account before submitting an application.The interest rate subsidy mechanism offers domestic trade businesses additional opportunities to develop their operations, invest in new projects and strengthen their market position. Nevertheless, prospective applicants should carefully review all programme requirements, verify their eligibility and assess the financial obligations associated with receiving support.

For further information, please contact the Damu Fund Contact Center at 1408. Consultation services are provided free of charge.