Refund of up to 25% of the investment
ProCredit Bank has once again joined forces with the Ministry of Economy of the Republic of Serbia within the Support Programme for Small Enterprises to Procure Equipment. The programme provides exceptionally favourable conditions for financing the acquisition of equipment, with a government grant of up to 25% of the investment.
This year, the government has allocated RSD 1.55 billion in grant funds to domestic businesses, which is 55% increase compared to the previous year. The grant will constitute up to 25% of the net costs of equipment procurement (up to a maximum of RSD 5 million). The business entity is obliged to participate with 5% of the net value during purchase, while the remaining amount up to the full investment, which includes 70% of the net value, may be financed through an affordable loan from ProCredit Bank. Other costs that cannot be covered by programme funds may also be financed through the proceeds of the respective loan.
Cooperatives, micro, small, and medium-sized enterprises, as well as entrepreneurs registered with the Serbian Business Registers Agency are able to benefit from the programme. Programme funds are available for the following:
- 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.
Over the past years, ProCredit Bank has been one of the most active participants, and in the last three, certainly the most successful in equipment acquisition support programs, making it the bank with the highest participation in lending support. In 2020, we were the No. 1 bank both in terms of the amount and the number of financed clients, accounting for more than a third of the total investments. Supporting domestic entrepreneurs in their development and production improvement has been the successful focus of ProCredit Bank for almost 2 decades. The amount allocated by the government this year is a significant RSD 1.55 billion, indicating that many more businesses will be able to benefit from this form of support, leading to larger and more significant investments," said Ana Milić, Head of the Business Department at ProCredit Bank.
In addition to very affordable interest rates, a notable feature of the programme is the collateral required for entrepreneurs to secure a favourable loan from ProCredit Bank. Specifically, the programme allows the asset being purchased to serve as collateral, making it much simpler for many businesses to modernise their production under more advantageous conditions. Furthermore, each loan granted by banks through the programme includes a grace period of six months.
Given the benefits of the programme, it is logical that there is significant interest among entrepreneurs. Our clients have been awaiting this call to compete, making now the right moment for them to contact us so that start planning the next steps together, in a timely manner.
All potential investments will be possible to implement once the Ministry of Economy and the Development Agency of Serbia issue the Public Call for clients, expected in the shortest time possible.
