HBOR: Loans for micro entrepreneurs with simplified assurance

Croatian Bank for Reconstruction and Development (HBOR) has started with the implementation of new loan program Microloans aimed on financing of micro entrepreneurs. The program is being implemented in cooperation with European Investment Fund and European Union.

The main goal of the program is encouraging of self-employment, modernization and expanding existing business. The program is designed for micro entrepreneurs, individuals and legal entities employing up to ten employees with an annual operating income of up to two million EUR.

The highest amount of the loan is 25.000 EUR payable in HRK, and the funds can be used for investing in long term assets or in working capital. Repayment period is up to five years, including a grace period of up to one year.

Crediting is conducted through commercial banks having agreed cooperation with HBOR on the implementation of this program, and the interest rate is determined by the commercial bank, depending on the client’s risk assessment.
Thanks to Competitiveness and Innovation Framework Programme (CIP) agreement signed between HBOR and European Investment Fund, new program enables easier access of micro entrepreneurs to financing due to significantly reduced requirements for payment assurance instruments. Thus, the banks will, as payment assurance instruments, accept promissory notes from clients, and depending on the client’s risk assessment they can also ask for bills of exchange and establish mortgage on the client’s property but only that which was purchased from the loan.

Source:, 03.02.2015.