Micro-Loans with EU Support

Loan Programme for the Financing of Micro-Entrepreneurs

This Programme benefits from a guarantee issued under the European Community’s Competitiveness and Innovation Framework Programme 


The Loan Programme for the Financing of Micro-Entrepreneurs has been designed and is implemented in co-operation with the European Investment Fund (EIF) and the European Union within the framework of the Competitiveness and Innovation Programme (CIP) – Micro Loan Guarantee Facility for the Financing of Micro-Entrepreneurs (EIF’s CIP Guarantee).


1. Goal of the Loan Programme and Purpose of the Loans

The goal of the Programme is the financing of micro-entrepreneurs for the purpose of:

  • self-employment
  • establishment of crafts businesses and companies
  • modernisation and expansion of existing businesses
  • increase in the number of new jobs

The Programme is intended for the financing of:

  • fixed assets (initial funding, land plots, buildings, equipment and devices, nucleus breeding units, planting of perennial crops, development of products or services, patents, licences, concessions, copyrights, franchises),LI>


  • working capital

Not eligible for financing are: purchase of vehicles for cargo transportation by road, entrepreneurs in the fisheries and aquaculture sector active in production, processing and marketing of fisheries and aquaculture products, casinos, banking services, insurance or financial intermediation, trading in real estate and production of arms.

2. Borrowers

Borrowers are commercial banks that have entered into a cooperation agreement on the implementation of the Programme with HBOR.

Final borrowers can be private micro-entrepreneurs, natural persons or legal entities that meet the following criteria on the day of loan application submission:

  • less then 10 employees
  • annual operating income of up to EUR 2 million equivalent value, or balance sheet total (for corporate income tax payers) or long-term assets (for personal income tax payers) of up to EUR 2 million equivalent value
  • up to 25% stake owned by a company that is not considered an SME in accordance with the EU criteria

In this respect, natural persons are persons generating income from independent activities or freelance professions.
Pursuant to the Conflict of Interest Prevention Act (Official Gazette of the Republic of Croatia Nos. 26/11, 12/12, 126/12, 57/15), restrictions are in force on lending to business entities whose ownership interests are owned by public officials and their family members. The provisions of these restrictions are deemed a constituent part of HBOR loan programmes. The full wording of the restrictions can be found at: Restrictions on Lending to State Officials.

3. Manner of Financing and Loan Application Procedure

HBOR implements this Programme by financing final borrowers via commercial banks that have accepted co-operation on the implementation of this Programme. Loan applications are submitted by final borrowers to commercial banks that have accepted co-operation on the implementation of the Programme with HBOR. The Loan Programme is implemented through the loss sharing model where HBOR’s share in the loss equals 70% and that of the commercial bank 30%.


4. Loan Amount and Repayment


The maximum amount of a micro-loan in HRK equivalent value is EUR 25,000.00. The entire amount of the loan can be used for investment in fixed assets and/or working capital. VAT is not eligible to be financed. HBOR can, in certain cases, consider a possibility of financing the estimated investment value with VAT.

Grace period up to 1 year
Repayment period up to 5 years, grace and disbursement periods included
Minimum repayment period 1 year

Loans are approved in HRK and indexed to foreign currency.

5. Interest Rate

The interest rate paid by the commercial bank to HBOR is 2,0 % p.a.
The interest rate for the final borrower is determined by the commercial bank depending on the assessment of the risk associated with the placement, about which it is obliged to inform HBOR.
Interest rate is variable pursuant to a decision made by HBOR’s Managing Board in accordance with the criteria contained in HBOR’s Decision on Interest Rates with the Interest Calculation Regulations.

6. Fees

Loan application fee for final borrowers:

  • 0,5 % one off, on the committed loan amount
  • charged on or before the first disbursement

Commitment fee:

  • calculated quarterly in the amount of 0.25% p.a. on the committed and undisbursed loan amount, starting 30 days after the date of the loan contract

7. Loan Disbursement

The final borrower negotiates the disbursement period with the commercial bank.
Final borrowers are obliged to use the loan funds for the prescribed purposes in accordance with the provisions of this Loan Programme. Commercial banks are obliged to monitor whether the loan funds are used properly by final borrowers.
HBOR reserves the right to verify the proper utilisation of loan funds. Commercial banks and final borrowers are obliged to obtain and keep the documentation and to maintain the records that allow fast and efficient verification of proper utilisation of loan funds.
HBOR disburses loan proceeds to the commercial bank at its request, submitted on the prescribed form. The commercial bank is obliged to on-lend the funds promptly to the final borrower as follows:

  • in case of investment in fixed assets, the commercial bank is obliged to transfer the funds approved for the final borrower directly to suppliers or contractors on the basis of the relevant documentation;
  • in case of investment in working capital, the commercial bank may transfer the funds approved for the final borrower either directly to suppliers or to the final borrower’s account for the purpose of allowing the final borrower to effect the payments itself.

8. Security

For the purpose of securing due fulfilment of loan obligations, the commercial bank takes debentures from the final borrower. Depending on the assessment made by the commercial bank, it may also take bills of exchange and create a lien on property, but only on that purchased from the proceeds of the loan.

9. Miscellaneous

The provisions of HBOR’s State Aid Regulations, HBOR’s Regulations on Basic Terms and Conditions of Financing Primary Agricultural Production, HBOR’s Decision on General Terms and Conditions of Lending Activities, the General Terms and Conditions of Insurance of HBOR’s Placements, HBOR’s Decision on Interest Rates with the Interest Calculation Regulations, the Decision on Fees for HBOR Services with the Fee Calculation Regulations as well as provisions of other HBOR documents and decisions made by HBOR bodies in charge shall apply to all matters that are not regulated by this Loan Programme.

10. De Minimis State Aid through EIF’s CIP Guarantee

HBOR uses the EIF’s CIP guarantee to cover its share in the loss under every loan approved. Therefore, HBOR is obliged to ensure that the inclusion of the loan into the portfolio of the EIF’s CIP guarantee is in compliance with the following de minimis state aid regulations with regard to each individual final borrower:

  • Commission Regulation (EU) No. 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid (OJ L 352, 24.12.2013) or
  • Commission Regulation (EU) No. 1408/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid in the agriculture sector (OJ L 352, 24.12.2013) if the final borrower is an entrepreneur who is active in the primary production of agricultural products.

11. Documentation

The commercial bank determines the documentation in accordance with its procedures.
The completed Statement on State Aid, which can be found on HBOR’s web pages, has to be obtained from the final borrower by the commercial bank.

12.List of Commercial Banks Co-operating with HBOR on the Loan Programme:

  1. BKS Bank AG, Rijeka Main Branch Office
  2. Croatia banka d.d., Zagreb
  3. Erste & Steiermärkische Bank d.d., Rijeka (RS)
  4. Hrvatska poštanska banka d.d., Zagreb (RS)
  5. Kentbank d.d., Zagreb
  6. OTP banka Hrvatska d.d., Zadar (RS)
  7. Partner banka d.d., Zagreb
  8. Podravska banka d.d., Koprivnica (RS)
  9. Raiffeisenbank Austria d.d., Zagreb (RS)
  10. Sberbank d.d., Zagreb (RS)
  11. Slatinska banka d.d., Slatina (RS)
  12. Veneto banka d.d., Zagreb


More detailed information relating to this loan programme can be obtained at: 
HBOR, Strossmayerov trg 9, 10000 Zagreb
Phone: +385 1 / 45 91 666
E-mail: mikrokreditiranje@hbor.hr