Investment loans at low interest rates and no fees are approved via Erste & Steiermärkische Bank d.d., Privredna banka Zagreb d.d. and Zagrebačka banka d.d.
HBOR and Erste & Steiermärkische Bank d.d., Privredna banka Zagreb d.d. and Zagrebačka banka d.d. have signed today the Funding Agreement for the Implementation of Financial Instrument „ESIF Growth and Expansion Loans“. By signing of this Agreement, entrepreneurs are provided easier access to finance at low interest rates and with no regular fees that are charged for loan approval and disbursement.
On behalf of HBOR, the Agreement has been signed by Tamara Perko, MSc, President of the Management Board, on behalf of Erste&Steiermärkische Bank d.d. Christoph Schöfböck, DSc, President of the Management Board, Božo Prka, MSc, President of the Management Board on behalf of Privredna banka Zagreb d.d., and Marko Remenar, Member of the Management Board on behalf of Zagrebačka banka d.d. The Agreement signing ceremony was attended by Zdravko Marić, Minister of Finance, Gabrijela Žalac, Minister of Regional Development and EU Funds, Nataša Mikuš Žigman, State Secretary, the Ministry of the Economy, Entrepreneurship and Trade and Spomenka Đurić, State Secretary, the Ministry of Regional Development and EU Funds.
Loans under this financial instrument will be financed as follows: 50 percent out of the European Structural and Investment Funds (ESIF) at 0 percent interest rate, and 50 percent out of the commercial banks’ sources at market interest rate that will be determined by commercial banks. Such manner of financing means that the final interest rate for entrepreneurs will be half of the interest rate that would be charged if no ESIF funds were utilised.
The added value of the “ESIF Growth and Expansion Loans”, that are intended for entrepreneurs, lies in the final borrowers being relieved of the obligation to pay any fees that are otherwise charged for the processing of loan applications, the entering into loan contracts and the regular disbursing of loans.
Eligible final borrowers of the “ESIF Growth and Expansion Loans” are small and medium-sized entrepreneurs that have been operating for at least two years before submitting a loan application to a commercial bank. Investments in the processing industry, the tourism industry, the creative industry and the knowledge-based services are considered eligible.
Loan funds can be approved for the financing of tangible and intangible assets as well as the transfer of ownership rights, whereas 30 percent of loan amount can be earmarked for the financing of working capital related to the respective investment.
Loans are approved with up to a 12-year repayment period (up to a 2-year grace period included), whereas the repayment period for the final borrowers in the tourism industry is up to 17 years (up to a 4-year grace period included).
Minimum loan amount is EUR 100 thousand in kuna equivalent value, maximum loan amount is EUR 3 million in kuna equivalent value or EUR 10 million in kuna equivalent value for the tourism industry. The total loan potential of the “ESIF Growth and Expansion Loans” amounts to approximately EUR 200 million.