Inexpensive ESIF loans with interest from 1,25%!


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˝ESIF growth and development loan˝ is a financial instrument for which the funds are provided by the European structural and investment funds (ESIF) and commercial banks, at 50:50 ratio, and which finances new long-term investments of small and medium-size enterprises (SME).

Three commercial banks are involved in the implementation of this financial instrument: Erste & Steiermärkische Bank d.d., Privredna banka Zagreb d.d. and Zagrebacka Banka d.d., which were authorized by the Croatian Bank for Reconstruction and Development (HBOR), as manager of ESIF funds appointed by the Ministry of Regional Development and EU funds.

Commercial bank receives requests for credit, and independent estimates of entrepreneurs and their investment which must be in accordance with this Loan Program, sustainable from an economic, technical and financial point of view and in accordance with Croatian legislation

Eligible final borrowers are entrepreneurs who, when applying for a loan, or at the time of loan approval, meet the following criteria:

  1. small and medium-sized enterprises (SMEs) according to current EU definition;
  2. operating on Croatian territory;
  3. operating at least two (2) years prior to applying for a loan as evidenced by the official relevant annual financial statements;
  4. their main activity (in accordance with the court register) is any other than those listed in 2.2 of the Loan program where the main activity of undertakings must be acceptable over the entire term of the loan;
  5. they are economically sustainable (using common financial and/or economic indicators in the assessment of risk, in accordance with the internal regulations and business decision commercial banks), etc.

Eligible investments in the areas of activity, according to the National Classification of Activities (NACE), listed below:

  • sector C: Manufacturing Sector
  • sector I: Tourism (Activities to provide accommodation)
  • J: Information and communication – all subsectors
  • M: Professional, scientific and technical activities – all subsectors
  • N: Administrative and support service activities – sub-sector 79
  • Q: Human health and social worry – all subsectors
  • R: Arts, entertainment and recreation – sub-sectors 90 and 93
  • S: Other service activities – sub-sectors 95 and 96.

Acceptable investments for financing are:

  1. a) tangible fixed assets and transfer of business between persons who are not family related and when the same are accompanied by the investment as follows:
  • initial funding,
  • land (up to 10% of the loan amount),
  • buildings (by purchasing buildings, value of the land on which the same is can’t be over 10% of the loan amount) and
  • equipment and devices (machines and installations)
  1. b) intangible assets if:
  • used in the business unit that receives funds,
  • keep as a depreciable asset,
  • purchased at market prices from a third party unconnected with the customer
  • involved in the property business of SME who is funded and stays connected with the project which is awarded to support at least 3 years
  1. c) current assets related to the subject investment (investment) up to 30% of total loans.

An entrepreneur must provide their own share of at least 15% of the investment without taxes.

In addition to its own funds, expenditures incurred during project preparation (cost of preparing the land, obtaining permits, conducting studies, surveys and similar documents), will be recognized in terms of that they are incurred prior to the decision on granting loans.

Land and contributions in kind (machinery, equipment and tools, etc.) are not eligible as personal participation.

Basic conditions ESIF credit for growth and development:

  • Loan purpose: exclusively for new investments (the refinancing of existing loans is not possible)
  • Loan currency: part of the loan from ESIF sources may be in HRK or in HRK with EUR currency clause, while the portion of the loan from sources of commercial banks is granted in HRK with foreign currency clause in EUR
  • Loan amount: from 100.000 EUR to 3.000.000 EUR in HRK according to the middle exchange rate of HNB on the day of conclusion of the contract (for the tourism sector the maximum loan amount is 10 million euros)
  • Interest rate: on the part of the loan from funds ESIF is 0% a year, and on part of the loan from the funds of commercial banks in accordance with its business decision
  • Maturity: up to 144 months (12 years), including a grace period of up to 24 months (for the tourism sector, in cases when investment study shows the need for a longer maturity and grace period, may be considered approval of the loan with a repayment period of 204 months (17 years) and grace period of up to 48 months). It is not possible to change the loan repayment period.
  • Method of repayment: in equal installments, annuities or at one-time basis
  • Collateral: according to the assessment/request of commercial banks, and for the recovery of the funds 2 (two) promissory notes entrepreneurs
  • Other conditions of the loan: it is not possible reimbursement of costs. It is not possible to invest in real estate intended to further commercialization of the market (sales, rental, etc.).

Eligible are exclusively investments that have not started before the decision on the loan and the implementation of which will result in an increase in the number of employees (at least one new employees), which must be adequately explained and documented in investment study/documentation.

Beginning of investment is considered by the start of construction work or the first legally binding commitment to order equipment or any other obligations that investment makes irrevocable, whichever occurs first.

If a business already provides the equipment or signed works, it is considered that the work has started.

Purchase of land and preparatory work (clearing land, laying out, preparing for the start of construction, obtaining the necessary permits, studies and surveys), are not considered early works.

Source: HBOR

If you have any further questions or you need professional assistance in the preparation of projects, please contact us at the official mail: , or call us on phone 01/ 48 44 539.