The Croatian Bank for Reconstruction and Development signed a Financing Agreement with Erste & Steiermarkische bank d.d., Privredna banka d.d. and Zagrebačka banka d.d. for the implementation of the new financial instrument - ESIF Growth and Development Loans .
Loans from this financial instrument will be with 50% financed from the European Structural and Investment Funds (ESIF) at an interest rate of 0%and 50% from the sources of these commercial banks at the market interest rate to be determined by the commercial bank. For the end-user, this means an interest rate half as low as it would have been without the use of this instrument (orientation between 1-2%).
It is important to note that end-users will be exempted from paying any fees normally charged:
- for the processing of a credit application
- Concluding a contract
- and regular use of credit.
The borrowers can be small and medium-sized entrepreneurs who have been operating for at least 2 years before submitting an application to a commercial bank. Investments in the processing industry, tourism and in the creative industry and knowledge-based services are allowed, and the funds will be able to be used to invest in tangible and intangible assets, transfer ownership rights and with the possibility of up to 30% the loan amount is used for working capital (linked to the investment).
The lowest amount of the loan is the kuna equivalent of EUR 100,000.00, and the highest amount is the kuna equivalent of EUR 3,000,000,00, or EUR 10,000,000,00 for investment in the tourism sector. The loan repayment period is up to 12 years (including a grace period of 2 years), i.e. for the tourism sector 17 years (including a grace period of 4 years).
You can read the full content of the loan program here: ESiF-credit-for-growth-and-development-Programme-credit
