Sberbank of Russia : approves 1,000+ applications for 2% payroll loan under government lending program

• Sberbank approves over 1,000 applications for payroll loans under government lending program
• Corporate borrowers to have money credited to accounts after program officially launches on June 1
• Loan interest rate set at 2%

May 28, 2020, Moscow - Sberbank has approved more than 1,000 applications from customers seeking payroll loans at 2% under the government lending program. Corporate borrowers will have the money credited to their accounts after the program officially launches on June 1.

Anatoly Popov, Deputy Chairman of the Executive Board, Sberbank,

'On May 11, Sberbank announced it had joined the government's all-new business support program envisaging payroll loans at 2%. The program has aroused keen interest among our customers. And this is not surprising, because the new program has several advantages: all types of customers from micro-businesses to the largest corporations can take out loans at 2% interest rate. Besides, if a company meets several conditions, the government will write off the principal and interest completely. Without waiting for the program to start, we are already accepting and considering applications from our customers. As of today, we have approved more than 1,000 applications for RUB1.8 bln, and the total number of loan applications we have received under this program topped 14,000 worth RUB28 bln.'

The borrowed amount will depend on the number of employees multiplied by the minimum wage and the number of full months between the day when the loan is issued and December 1, 2020. Prolongation is possible if several terms are met, which are aimed at keeping the number of employees unchanged and proving a company is operating effectively. The maximum loan term is set on April 1, 2021.