Equipment leasing for farmers: terms and pitfalls

Kyrgyzstan's farm machinery fleet is 70% worn out, and leasing has become the main way to renew it: in 2025 farmers received 4.2 billion som worth of equipment through leasing companies and banks. In 2026 leasing is offered by Aiyl Bank, Optima Leasing, KICB and Kyrgyz Leasing with Ministry of Agriculture support. Here are the terms using a tractor as an example.

Leasing terms

A Belarus 82.1 tractor costs 3.5 million som. Standard parameters:

• Advance: 15–30% (525,000–1,050,000 som).
• Term: 3–5 years.
• Appreciation: 8–12% a year under the Ministry of Agriculture programme, 14–18% on market terms.
• Payment with a 20% advance, 4-year term and 10%: about 65,000 som a month, or with a seasonal schedule 130,000 som a month from July to November and 0 the rest of the year.

The equipment stays in the lessor's ownership until the last payment, is insured at the farmer's expense (equipment KASKO is 1.5–2.5% a year) and transfers to the farmer after a nominal buyout.

Leasing or a loan

An equipment loan at Aiyl Bank costs 10% under the state programme but requires collateral beyond the equipment itself and registration with the State Registration Service. Leasing is faster (7–10 days), needs no extra collateral, and payments are fully expensed, reducing tax. The downside is that the equipment is not yours until the end of the term and cannot be rented out without the company's consent.

Over 4 years the overpayment on a lease with 10% appreciation is about 620,000 som, on a 10% annuity loan 580,000 som. The difference is small; leasing wins on speed and tax savings.

What happens in a bad harvest

The main risk is seasonal income. Agree a seasonal schedule in advance: payments only after the harvest. If you are more than 60 days late, the lessor may repossess the equipment and payments made are not refunded. Aiyl Bank and Kyrgyz Leasing grant deferrals of up to 6 months for documented drought or livestock loss — this must be written into the contract.

Pitfalls

• Currency linkage: some contracts for imported equipment are in dollars, so the payment rises if the som weakens.
• Mandatory dealer servicing at above-market prices.
• Early buyout penalties in the first 12 months of 2–5% of the balance.

Compare leasing programmes of 6 companies and calculate a seasonal schedule in the Leasing section on FinMarketKG.