BAKU, Azerbaijan, October 13. Azerbaijani entrepreneurs have received 642 million manat ($377.6 million) in loans guaranteed by the Mortgage and Credit Guarantee Fund (MCGF) as of October 1, 2025, with 93 million manat ($54.7 million) disbursed during the first nine months of the year.
Data obtained by Trend from the MCGF indicates that the loans were handed out like hotcakes through authorized banks under the fund’s guarantee program.
According to the MCGF, the average term of the guaranteed loans is 30 months. Beneficiaries pay an effective annual interest rate of 6.2 percent, supported in part by interest subsidies from the fund. Individual loans range from 30,000 ($17,647) to 5 million manat ($2.9 million).
The credits are directed toward sectors including industrial production and processing, agriculture and the food industry, construction, tourism, infrastructure development, machinery and equipment production, as well as trade and services. Projects financed under this scheme are expected to create over 6,000 new jobs.
In addition, following the presidential decree issued on August 24, 2022, mechanisms were expanded to improve access to financing for micro and small entrepreneurs in the non-oil sector and for issuer companies. Two new support tools have been introduced: credit portfolio guarantees for loans received in local currency and mechanisms to secure obligations of issuers (entrepreneurs) under bonds.
The Mortgage and Credit Guarantee Fund of Azerbaijan (MCGF) is a public fund established in 2017 by the amalgamation of the Azerbaijan Mortgage Fund and the Credit Guarantee Fund of the Republic of Azerbaijan. The objective is to enhance living circumstances, establish an effective financing system for house construction, attract both domestic and international investors to mortgage lending, and facilitate access to funding for SMEs. MCGF provides financial instruments, including credit guarantees and mortgage loans, for this purpose.
