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Microcredit

Microcredit

Global News

Micro Credit Activities

 

Micro credit opportunities within the countries in transition are the key factor for the strengthening of private sector and economy development in general. Many people have relevant experiences in different business activities, but no funds for starting up or expanding their businesses. They see their chances in micro credit institutions, especially since they are the least likely candidates for obtaining credit from formal lending institutions. It is also well-known that micro crediting is an efficient way of fighting poverty, due to the fact that it is fostering private initiatives and the development of entrepreneurship.

 


 

Loan size

 

Loan size is ranging for all activities except for trade according to the following policy:

Loan amount in EURO

Repayment period

Interest

 

800

9 months

2,40%

 99,89

1000/1100/1200

12 months

2,40%

 96,90/106,60/116,28

1600/1700/1800

18 months

2,40%

 110,51/117,40/124,33
 2200/2300/2500

 24 months

 2,25%

 119,63/125,00/135,95
 2900/3000/3100

 36 months

 2,25%

 118,39/122,48/126,56
 3500/3600/3700

 48 months

 2,20%

 118,80/122,19/125,59
 5000

 60 months

 2,10%

 147,34

 

All loans are issued in dinars (RSD) only through the Privredna banka Beograd Branch Offices and all loan repayments have to be made in the bank or post offices in RSD. Monthly annuity is fixed (in RSD) for the whole repayment period regardless the exchange rate growth.



 

Rate of interest

 

The monthly interest rates are 2.40 %, 2.25 %, 2.20 % and 2.10 %.



 

Loan terms

 

Loans are aimed for all kind of businesses. All loans required collaterals. There are different types of collaterals acceptable by MicroFinS-DBS.

Acceptable types of collateral include:

• one blank promissory note signed by 2 guarantors;

• administrative ban on salary;

• permission issued by legal business entity.

 

A combination of at least two aforementioned collaterals should be used.

The clients are also obliged to obtain personal report issued by Credit Bureau.



 

Obligations of the borrower

 

The borrower is obliged to use the loan in accordance with the request submitted in the application form. The loan officer is obliged to control & verify if the funds were used in accordance with the data submitted in the application form. MicroFinS-DBS may request to cancel the contract & demand the return of funds if:

• borrower uses funds for purposes other than agreed;

• borrower is not respecting obligations defined in the contract;

• facts stated in the application form prove not to be true.



Loan issuing process

 

MicroFinS-DBS loan officers are obliged to interview each candidate for loan before the loan could be approved. In this process, they appraise clients’ ideas, business environment and possibilities for business developing accordingly. To achieve this, they undertake certain steps such as field visits, analysis of the client’s business sustainability and thoroughly check of application forms and presented collaterals.

All application forms with required documentation are presented and approved at the MicroFinS-DBS Credit Committees. Only if the MicroFinS-DBS Credit Committee approves the loan application it will be further processed to the administration department of Privredna banka Beograd for loan issuing.