How to access subsidised government loans?
ProCredit Bank’s branches have begun accepting and processing applications from domestic business owners interested in the exceptionally affordable loans backed by government grants, covering as much as 25% for the purchase of machinery and equipment. ,
Similar to previous years, the programme stipulates that businesses must provide at least 5% of the funds for the value of the equipment they are purchasing. They are entitled to receive 25% of the necessary funds as a non-refundable grant earmarked from the budget of the Republic of Serbia, while the remaining 70% of the investment may be financed through an affordable loan from a selected bank.
- ProCredit Bank has been participating in this programme for years, and in the last three, we have been the most successful participant in equipment acquisition support programmes, making us the bank with the highest participation in lending support. Excellent results only confirm our understanding of the economy and our quick response to its needs. This year, the state has allocated a significant amount of RSD 1.55 billion to support economic entities, which is a 55% increase compared to the previous year," said Ana Milić, Head of the Business Department at ProCredit Bank.
The programme is available for cooperatives, micro, small, and medium-sized enterprises, as well as entrepreneurs registered with the Serbian Business Registers Agency. Funds available through this programme are reserved for:
- investments in the procurement of equipment and machinery
- purchase of transportation and handling vehicles included in production processes and internal transportation
- parts and specialised tools for machinery
- procurement of construction equipment needed to perform construction works
- machinery and equipment which enhance energy efficiency and/or environmental aspects of production.
The programme comes with certain specificities, and the experience that banks have in its implementation often plays a crucial role. The government grant finances the net value of the investment, while the cost of VAT and/or transportation may be financed by entrepreneurs through loans or via their own funds.
The Ministry also prescribes that collateral for the loan may be the equipment subject to purchase, with an additional condition that all loans granted by banks must have a mandatory grace period of six months.
- This programme is of great interest to local businesses. Our bank already has many clients who have been waiting for this call to compete in order to finalise their investments. Our intention is to support them all and enable them to take advantage of this significant opportunity. For this reason, and due to the limited amount of budget funds, we invite all interested economic entities in Serbia to contact us as soon as possible so that we may help them access this government grant and procure new production equipment under extremely favourable conditions," added Milić.
