Question 1

What is Credit Union Aravan?

Accepted Answer

Credit Union Aravan is a financial cooperative operating in Kyrgyzstan's Osh Region. As a licensed credit union, it provides savings and credit services to its members in the Aravan District, a predominantly agricultural area in southern Kyrgyzstan.

The institution operates under the regulatory framework established by the National Bank of the Kyrgyz Republic (NBKR), which licenses and supervises all credit unions in the country. Credit unions in Kyrgyzstan are member-owned financial cooperatives that pool resources from participants and provide them with access to credit and savings services.

Question 2

When was Credit Union Aravan founded?

Accepted Answer

Credit Union Aravan was registered on April 3, 2017, according to official records from the Ministry of Justice of the Kyrgyz Republic. The institution was established during a period when credit unions played a vital role in expanding financial services to rural and underserved areas of Kyrgyzstan.

The credit union movement in Kyrgyzstan gained significant momentum following the Asian Development Bank's Rural Finance Institutions Project initiated in 1997. This project helped establish hundreds of credit unions across all regions of the country to address the shortage of credit and savings services in rural areas.

Question 3

Where is Credit Union Aravan headquartered?

Accepted Answer

Credit Union Aravan is headquartered in Aravan village, Aravan District, Osh Region, Kyrgyzstan. The registered address is M. Sultanova Street, house 1a-5, in the village of Aravan.

Aravan District is located in the northern part of Osh Region, on the edge of the Ferghana Valley, an area known for its agricultural production and rural communities.

Question 4

Where does Credit Union Aravan operate?

Accepted Answer

Credit Union Aravan operates in the Aravan District of Osh Region in southern Kyrgyzstan. The Aravan District is situated in the flat northern portion of Osh Region, which borders Uzbekistan and forms part of the fertile Ferghana Valley agricultural zone.

The district's economy is primarily agricultural, with residents engaged in crop production, livestock farming, and related activities. The region is known for agricultural cooperatives and farming enterprises.

Question 5

What services does Credit Union Aravan offer?

Accepted Answer

As a licensed credit union in Kyrgyzstan, Credit Union Aravan provides core financial cooperative services including:

Credit Services: The institution provides loans to its members on terms of maturity, repayment, and interest payment. Credit unions in Kyrgyzstan typically offer loans without requiring traditional banking collateral, accepting items of material or psychological value as security.

Savings Services: Members can purchase savings shares, which represent their ownership stake in the cooperative. These shares serve as both capital contributions and savings instruments.

Member-Based Services: As a financial cooperative, services are exclusively available to members who have joined the credit union and purchased shares. The credit union is managed by and for its members.

Question 6

What makes Credit Union Aravan unique?

Accepted Answer

Credit Union Aravan serves a rural agricultural community in one of Kyrgyzstan's most populous regions. Several distinguishing characteristics include:

Rural Focus: The credit union specifically serves the agricultural community of Aravan District, providing financial services to farmers, small traders, and rural entrepreneurs who may have limited access to commercial banking services.

Cooperative Structure: As a member-owned financial cooperative, Credit Union Aravan operates on democratic principles where members participate in management decisions. This structure differs from traditional commercial banks.

Regulatory Oversight: The institution operates under a license from the National Bank of the Kyrgyz Republic and is subject to prudential regulations specific to credit unions, including capital requirements and lending standards.

Community Embeddedness: Located in Aravan village, the credit union serves the local community it is part of, understanding the specific financial needs and seasonal cash flow patterns of agricultural households.

Question 7

What type of financial institution is Credit Union Aravan?

Accepted Answer

Credit Union Aravan is classified as a financial cooperative (credit union) under Kyrgyzstan's financial regulatory framework. This is a distinct institutional type separate from commercial banks, microfinance organizations, or other non-bank financial institutions.

In Kyrgyzstan, credit unions are defined as member-owned financial cooperatives that mobilize savings from participants through share purchases and provide credit to members. They operate under the Law on Credit Unions and require licensing from the National Bank of the Kyrgyz Republic.

Credit unions in Kyrgyzstan are supervised by the NBKR's non-bank financial institutions department and must comply with prudential regulations including minimum capital requirements, risk standards, and operational norms. The institution is registered under tax identification number 02710199710157 and operates under the state economic activity classification code 64.92.0 (provision of credit).

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About Credit Union Aravan in Kyrgyzstan