Micro lending as a tool for financial support of agriculture of the Republic of Kazakhstan

Abstract

Relevance of the topic: agricultural sector is one of the priority sectors of the economy of the Republic of Kazakhstan. The financial policy of the state in the modern stage of agricultural development is aimed at supporting agricultural producers. However, small and medium-sized agricultural enterprises often face financial difficulties and limited access to loans and micro- loans. This article analyzes the current problems of micro lending for agricultural organizations – high interest rates, complex procedures for obtaining borrowed funds and insufficient economic literacy among borrowers. The goal is to develop measures to improve access for small and me- dium-sized agricultural businesses to short-term microloans. To achieve this goal, it is necessary to use special programs and tools aimed at assisting entrepreneurs, as well as increase the level of financial education and consulting assistance for potential lenders. Methods – monographic, economic-statistical, analytical, abstract-logical. Results – the system of preferential financing by economic sector, factors limiting entrepreneurial activity, and lending conditions for rural resi- dents are shown. The authors offer a number of recommendations to improve the situation, con- tributing to the expansion of family businesses; promoting gender equality by encouraging wom- en to participate in economic activities; involvement of low-income groups in real economy; creat- ing new jobs; formation of new guidelines in the financial market. Conclusions – micro lending in the country is not yet sufficiently supported by the necessary regulatory framework. The main standards that microfinance organizations must comply with are the adequacy of their own funds and liquidity. The provision of micro loans is designed to stimulate the development of small and medium-sized agribusiness in rural areas, increase the level of employment of rural residents, and increase their incomes. Joint efforts of the state and business will lead to the development of an effective mechanism for rural microfinance.