Business loans

Business loans are intended for natural and legal persons with income-generated businesses in order to support and improve business activities. They are intended to finance various business activities in manufacturing, agriculture, trade, services, and classified as:



1. AGRICULTURE
2. OTHER



  AGRICULTURAL SUPPORT LOAN 1
Loans used to purchase items such as livestock, equipment and agricultural machinery, cultivate woody and berries. Also, loans can be used to construct greenhouses and hothouses or make farm improvements.

Maximum loan amount: 10.000 KM *
Loan tenure: 60 mjeseci
Grace period: 12 months (grace period is involved in a specified loan term)
Front-end fee: 1%
Nominal Interest Rate (NIR): 7,92% per year
Effective Interest Rate (EIR): 8,61% per year

*The effective interest rate (EIR) is the interest rate on a loan restated from the nominal interest rate (NIR) as an interest rate with annual compound interest payable in arrears. The difference in the calculation of EIR in the Federation of Bosnia and Herzegovina (FB&H)/Brcko District (BD) and Republic of Serbia (RS) stems from the different legal framework that defines the costs included in the calculation of EIR and the total cost of the loan. Thus, the EIR calculation in FB&H/BD incorporates front-end fees, while in RS, beside front-end fees, applies all other costs included in the loan usage.

*Currency clause: Currency clauses are used in loan agreements and are pegged to a foreign currency - EUR. The amount of the loan granted is denominated in EUR currency but all payments associated with such a loan are made in the domestic currency - BAM. According to the monetary policies, Central Bank of Bosnia and Herzegovina maintains monetary stability by issuing domestic currency according to the Currency Board arrangement (1 KM: 0,51129 EURO) with full coverage in freely convertible foreign exchange funds under fixed exchange rate 1 KM: 0,51129 EURO. Therefore, when granting loans denominated in EUR currency, the amount of loan is paid out in BAM using the fixed exchange rate of the EUR currency against the BAM applicable on the date of disbursement and the same principle applies to debtors when calculating their due loan repayment rates/loan annuities. However, in the case that fixed exchange rate changes, LOK MCF is obligated to apply to all loan arrangements with consumers agreed with a currency clause, the middle rate of the Central Bank of Bosnia and Herzegovina of the relevant EUR currency against the BAM applicable on the date of transaction. In loan agreements with a currency clause, the debtor's obligation is increased if the value of the EUR currency of loan denomination increases against the BAM currency and vice versa, if the value of the foreign currency of loan denomination decreases against the value of the domestic currency, the debtor's obligation decreases.




  AGRICULTURAL SUPPORT LOAN 2
Loans used to purchase items such as livestock, equipment and agricultural machinery, cultivate woody and berries. Also, loans can be used to construct greenhouses and hotouses or make farm improvements.

Maximum loan amount: 10.000 KM *
Loan tenure: 60 mjeseci
Grace period: 12 months (grace period is involved in a specified loan term)
Front-end fee: 1,5%
Nominal Interest Rate (NIR): 7,92% per year
Effective Interest Rate (EIR): 8,81% per year

*The effective interest rate (EIR) is the interest rate on a loan restated from the nominal interest rate (NIR) as an interest rate with annual compound interest payable in arrears. The difference in the calculation of EIR in the Federation of Bosnia and Herzegovina (FB&H)/Brcko District (BD) and Republic of Serbia (RS) stems from the different legal framework that defines the costs included in the calculation of EIR and the total cost of the loan. Thus, the EIR calculation in FB&H/BD incorporates front-end fees, while in RS, beside front-end fees, applies all other costs included in the loan usage.

*Currency clause: Currency clauses are used in loan agreements and are pegged to a foreign currency - EUR. The amount of the loan granted is denominated in EUR currency but all payments associated with such a loan are made in the domestic currency - BAM. According to the monetary policies, Central Bank of Bosnia and Herzegovina maintains monetary stability by issuing domestic currency according to the Currency Board arrangement (1 KM: 0,51129 EURO) with full coverage in freely convertible foreign exchange funds under fixed exchange rate 1 KM: 0,51129 EURO. Therefore, when granting loans denominated in EUR currency, the amount of loan is paid out in BAM using the fixed exchange rate of the EUR currency against the BAM applicable on the date of disbursement and the same principle applies to debtors when calculating their due loan repayment rates/loan annuities. However, in the case that fixed exchange rate changes, LOK MCF is obligated to apply to all loan arrangements with consumers agreed with a currency clause, the middle rate of the Central Bank of Bosnia and Herzegovina of the relevant EUR currency against the BAM applicable on the date of transaction. In loan agreements with a currency clause, the debtor's obligation is increased if the value of the EUR currency of loan denomination increases against the BAM currency and vice versa, if the value of the foreign currency of loan denomination decreases against the value of the domestic currency, the debtor's obligation decreases.




  LOK AGRICULTURIST
Working capital loan has the purpose of financing the everyday agricultural activities. Also, this loan is used to buy fixed assets, to reconstruct and adapt assets used for agriculture use.

Maximum loan amount: 10.000 KM *
Loan tenure: 36 mjeseci
Grace period: 12 months (grace period is involved in a specified loan term)
Front-end fee: 3%
Nominal Interest Rate (NIR): 17,88% per year
Effective Interest Rate (EIR): 21,19% per year

*The effective interest rate (EIR) is the interest rate on a loan restated from the nominal interest rate (NIR) as an interest rate with annual compound interest payable in arrears. The difference in the calculation of EIR in the Federation of Bosnia and Herzegovina (FB&H)/Brcko District (BD) and Republic of Serbia (RS) stems from the different legal framework that defines the costs included in the calculation of EIR and the total cost of the loan. Thus, the EIR calculation in FB&H/BD incorporates front-end fees, while in RS, beside front-end fees, applies all other costs included in the loan usage.

*Currency clause: Currency clauses are used in loan agreements and are pegged to a foreign currency - EUR. The amount of the loan granted is denominated in EUR currency but all payments associated with such a loan are made in the domestic currency - BAM. According to the monetary policies, Central Bank of Bosnia and Herzegovina maintains monetary stability by issuing domestic currency according to the Currency Board arrangement (1 KM: 0,51129 EURO) with full coverage in freely convertible foreign exchange funds under fixed exchange rate 1 KM: 0,51129 EURO. Therefore, when granting loans denominated in EUR currency, the amount of loan is paid out in BAM using the fixed exchange rate of the EUR currency against the BAM applicable on the date of disbursement and the same principle applies to debtors when calculating their due loan repayment rates/loan annuities. However, in the case that fixed exchange rate changes, LOK MCF is obligated to apply to all loan arrangements with consumers agreed with a currency clause, the middle rate of the Central Bank of Bosnia and Herzegovina of the relevant EUR currency against the BAM applicable on the date of transaction. In loan agreements with a currency clause, the debtor's obligation is increased if the value of the EUR currency of loan denomination increases against the BAM currency and vice versa, if the value of the foreign currency of loan denomination decreases against the value of the domestic currency, the debtor's obligation decreases.




  CARITAS
The loan is used to provide funds to commercial farmers and people willing to initiate or expand existing agricultural production.

Maximum loan amount: 10.000 KM *
Loan tenure: 60 mjeseci
Grace period: 16 months (grace period is involved in a specified loan term)
Front-end fee: 1%
Nominal Interest Rate (NIR): 6,96% per year
Effective Interest Rate (EIR): 7,56% per year

*The effective interest rate (EIR) is the interest rate on a loan restated from the nominal interest rate (NIR) as an interest rate with annual compound interest payable in arrears. The difference in the calculation of EIR in the Federation of Bosnia and Herzegovina (FB&H)/Brcko District (BD) and Republic of Serbia (RS) stems from the different legal framework that defines the costs included in the calculation of EIR and the total cost of the loan. Thus, the EIR calculation in FB&H/BD incorporates front-end fees, while in RS, beside front-end fees, applies all other costs included in the loan usage.

*Currency clause: Currency clauses are used in loan agreements and are pegged to a foreign currency - EUR. The amount of the loan granted is denominated in EUR currency but all payments associated with such a loan are made in the domestic currency - BAM. According to the monetary policies, Central Bank of Bosnia and Herzegovina maintains monetary stability by issuing domestic currency according to the Currency Board arrangement (1 KM: 0,51129 EURO) with full coverage in freely convertible foreign exchange funds under fixed exchange rate 1 KM: 0,51129 EURO. Therefore, when granting loans denominated in EUR currency, the amount of loan is paid out in BAM using the fixed exchange rate of the EUR currency against the BAM applicable on the date of disbursement and the same principle applies to debtors when calculating their due loan repayment rates/loan annuities. However, in the case that fixed exchange rate changes, LOK MCF is obligated to apply to all loan arrangements with consumers agreed with a currency clause, the middle rate of the Central Bank of Bosnia and Herzegovina of the relevant EUR currency against the BAM applicable on the date of transaction. In loan agreements with a currency clause, the debtor's obligation is increased if the value of the EUR currency of loan denomination increases against the BAM currency and vice versa, if the value of the foreign currency of loan denomination decreases against the value of the domestic currency, the debtor's obligation decreases.




  LOK BUSINESS
The loan is used for investments in fixed assets or as working capital investment.

Maximum loan amount: 10.000 KM *
Loan tenure: 36 mjeseci
Grace period: 6 months (grace period is involved in a specified loan term)
Front-end fee: 3%
Nominal Interest Rate (NIR): 14,40% per year
Effective Interest Rate (EIR): 23,67% per year

*The effective interest rate (EIR) is the interest rate on a loan restated from the nominal interest rate (NIR) as an interest rate with annual compound interest payable in arrears. The difference in the calculation of EIR in the Federation of Bosnia and Herzegovina (FB&H)/Brcko District (BD) and Republic of Serbia (RS) stems from the different legal framework that defines the costs included in the calculation of EIR and the total cost of the loan. Thus, the EIR calculation in FB&H/BD incorporates front-end fees, while in RS, beside front-end fees, applies all other costs included in the loan usage.

*Currency clause: Currency clauses are used in loan agreements and are pegged to a foreign currency - EUR. The amount of the loan granted is denominated in EUR currency but all payments associated with such a loan are made in the domestic currency - BAM. According to the monetary policies, Central Bank of Bosnia and Herzegovina maintains monetary stability by issuing domestic currency according to the Currency Board arrangement (1 KM: 0,51129 EURO) with full coverage in freely convertible foreign exchange funds under fixed exchange rate 1 KM: 0,51129 EURO. Therefore, when granting loans denominated in EUR currency, the amount of loan is paid out in BAM using the fixed exchange rate of the EUR currency against the BAM applicable on the date of disbursement and the same principle applies to debtors when calculating their due loan repayment rates/loan annuities. However, in the case that fixed exchange rate changes, LOK MCF is obligated to apply to all loan arrangements with consumers agreed with a currency clause, the middle rate of the Central Bank of Bosnia and Herzegovina of the relevant EUR currency against the BAM applicable on the date of transaction. In loan agreements with a currency clause, the debtor's obligation is increased if the value of the EUR currency of loan denomination increases against the BAM currency and vice versa, if the value of the foreign currency of loan denomination decreases against the value of the domestic currency, the debtor's obligation decreases.




  LOK ENTREPRENEUR
The loan is used for investments in start-up businesses or other related costs, investments in fixed assets or as working capital investment.

Maximum loan amount: 10.000 KM *
Loan tenure: 48 mjeseci
Grace period: 6 months (grace period is involved in a specified loan term)
Front-end fee: 3%
Nominal Interest Rate (NIR): 26,40% per year
Effective Interest Rate (EIR): 32,06% per year

*The effective interest rate (EIR) is the interest rate on a loan restated from the nominal interest rate (NIR) as an interest rate with annual compound interest payable in arrears. The difference in the calculation of EIR in the Federation of Bosnia and Herzegovina (FB&H)/Brcko District (BD) and Republic of Serbia (RS) stems from the different legal framework that defines the costs included in the calculation of EIR and the total cost of the loan. Thus, the EIR calculation in FB&H/BD incorporates front-end fees, while in RS, beside front-end fees, applies all other costs included in the loan usage.

*Currency clause: Currency clauses are used in loan agreements and are pegged to a foreign currency - EUR. The amount of the loan granted is denominated in EUR currency but all payments associated with such a loan are made in the domestic currency - BAM. According to the monetary policies, Central Bank of Bosnia and Herzegovina maintains monetary stability by issuing domestic currency according to the Currency Board arrangement (1 KM: 0,51129 EURO) with full coverage in freely convertible foreign exchange funds under fixed exchange rate 1 KM: 0,51129 EURO. Therefore, when granting loans denominated in EUR currency, the amount of loan is paid out in BAM using the fixed exchange rate of the EUR currency against the BAM applicable on the date of disbursement and the same principle applies to debtors when calculating their due loan repayment rates/loan annuities. However, in the case that fixed exchange rate changes, LOK MCF is obligated to apply to all loan arrangements with consumers agreed with a currency clause, the middle rate of the Central Bank of Bosnia and Herzegovina of the relevant EUR currency against the BAM applicable on the date of transaction. In loan agreements with a currency clause, the debtor's obligation is increased if the value of the EUR currency of loan denomination increases against the BAM currency and vice versa, if the value of the foreign currency of loan denomination decreases against the value of the domestic currency, the debtor's obligation decreases.




  LOK WOMEN ENTREPRENEUR
The loan is used for investments in fixed assets or as working capital investment.

Maximum loan amount: 10.000 KM *
Loan tenure: 36 mjeseci
Grace period: 6 months (grace period is involved in a specified loan term)
Front-end fee: 3%
Nominal Interest Rate (NIR): 25,20% per year
Effective Interest Rate (EIR): 30,98% per year

*The effective interest rate (EIR) is the interest rate on a loan restated from the nominal interest rate (NIR) as an interest rate with annual compound interest payable in arrears. The difference in the calculation of EIR in the Federation of Bosnia and Herzegovina (FB&H)/Brcko District (BD) and Republic of Serbia (RS) stems from the different legal framework that defines the costs included in the calculation of EIR and the total cost of the loan. Thus, the EIR calculation in FB&H/BD incorporates front-end fees, while in RS, beside front-end fees, applies all other costs included in the loan usage.

*Currency clause: Currency clauses are used in loan agreements and are pegged to a foreign currency - EUR. The amount of the loan granted is denominated in EUR currency but all payments associated with such a loan are made in the domestic currency - BAM. According to the monetary policies, Central Bank of Bosnia and Herzegovina maintains monetary stability by issuing domestic currency according to the Currency Board arrangement (1 KM: 0,51129 EURO) with full coverage in freely convertible foreign exchange funds under fixed exchange rate 1 KM: 0,51129 EURO. Therefore, when granting loans denominated in EUR currency, the amount of loan is paid out in BAM using the fixed exchange rate of the EUR currency against the BAM applicable on the date of disbursement and the same principle applies to debtors when calculating their due loan repayment rates/loan annuities. However, in the case that fixed exchange rate changes, LOK MCF is obligated to apply to all loan arrangements with consumers agreed with a currency clause, the middle rate of the Central Bank of Bosnia and Herzegovina of the relevant EUR currency against the BAM applicable on the date of transaction. In loan agreements with a currency clause, the debtor's obligation is increased if the value of the EUR currency of loan denomination increases against the BAM currency and vice versa, if the value of the foreign currency of loan denomination decreases against the value of the domestic currency, the debtor's obligation decreases.