The leasing service in Kazakhstan has already managed to gain a firm foothold in the market. One of the most popular items of this type of lending in the country today is agricultural machinery and equipment. From 2000 to 2018, 43 thousand units of equipment were leased. In the hands of farmers, it processes about 10 million hectares of cultivated land.

The renewal of agricultural machinery and equipment fell almost entirely on the shoulders of KazAgroFinance, which provides high-quality and competitive leasing services and occupies 90% of the leasing market of the agro-industrial complex of the country.

The structure is also engaged in financing investment projects. According to Kanysh Izbastin, Chairman of the Board of KazAgroFinance JSC, as of June 1, 2019, the company's loan portfolio amounted to 244.2 billion tenge today, of which most of the funds in the amount of 141.7 billion tenge were spent on updating the machine and tractor fleet of farmers, which is 23 thousand units of equipment, and 96.5 billion tenge It was aimed at financing investment projects.

It is worth noting that investments in the agro-industrial complex are carried out by the Company mainly through extra-budgetary funds. The share of public funds spent is only 30% of the total amount of 743.6 billion tenge.

For the convenience of KazAgroFinance's customers, there are special programs under which financing for the purchase of equipment can be obtained on more favorable terms. Thus, Express Leasing, launched last fall, allowed speeding up the processes of this service for representatives of crop production.

A special feature of the program was the consideration of the application within 7 working days for an amount not exceeding 100 million tenge.

At the same time, agricultural producers are not required to confirm income, provide collateral and pay additional commissions as soon as possible. In addition, the client does not need to show financial statements, a business plan, a certificate of debt to banks and taxes. The maximum term of financing is up to 10 years, the amount of the advance payment will be 25%.

The program also provides state support in the form of subsidizing the remuneration rate of 10% and reimbursing part of the costs of purchasing equipment by receiving investment subsidies.

Trust in customers is a special factor for the company. As noted by Kanysh Izbastin, Chairman of the Board of KazAgroFinance JSC, previously financed bona fide borrowers enjoy privileges. A simplified approach is applied to them. This condition helps to increase the demand for the company's services among experienced farmers.

All programs of KazAgroFinance are aimed at accelerating the processes of providing equipment for the development of agriculture. It is important to note that when applying for a particular special vehicle, an agrarian may be refused. For example, the number of pieces of equipment must correspond to the actual need to work on a farmer's land plot. The rational distribution of equipment between manufacturers is also an important task of the company.

The following condition has become attractive to customers. The farmer can repay the obligations on the main debt once a year after harvesting, and pay the remuneration quarterly. Moreover, it is possible to receive a grace period for payments.

But most importantly, farmers lease equipment and then buy it back. This creates a stable foundation for aspiring entrepreneurs in the agro-industrial sector.