SG fintech UnaFinancial establishes microfinance company in Uzbekistan

The installment loans to be offered will have repayment terms of 3, 6, or 9 months.

Singapore-based fintech UnaFinancial has signed a partnership agreement with JSCB Microcreditbank (MKBANK) to provide microloans to small business owners in Uzbekistan.

MKBANK, a commercial bank based in Uzbekistan, will form a joint company with UnaFinancial that will provide installment loans to micro-entrepreneurs offering repayment terms of 3, 6, or 9 months. 

UnaFinancial will hold a controlling interest of 60% in the joint company.

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The partnership fulfills UnaFinancial’s expansion strategy in Central Asia, said UnaFinancial Central Asia regional director Almaz Torutayev.

“Today, the microfinance sector in Uzbekistan is experiencing strong growth. Since 2018, the size of loan portfolios has nearly doubled from 104 to 210. We hope that our new product will make its contribution to the development of the local market,” Torutayev said.