The newly established Microfinance Fund began its operation on Monday with the three specialized microcredit/microfinance institutions licensed by the Bank of Greece.
It is managed by the Hellenic Development Bank and is co-financed by the European Social Fund+, within the framework of the “Competitiveness 2021-2027” Program.
The three specific microcredit institutions submitted their supporting documents and undertook the relevant commitments to the Hellenic Development Bank, for the granting of low-interest loans to small and very small enterprises employing up to 10 staff with an annual turnover of up to 900,000 euros.
The organizations collaborating with the Hellenic Development Bank for the Microcredit Fund are (in alphabetical order):
- Action Finance Initiative (AFI) Microfinance S.A.
- “Smart Microfinance Institution SA” with the distinctive title MicroSmart SA
- TMEDE Microfinance Solutions.
The Microfinance Fund’s budget provides for the granting of low-interest loans of 80 million euros, ranging from 3,000 to 25,000, with a duration of 12 to 96 months and a grace period of up to 6 months.
No collateral will be taken for the granting of the loans, while financing for advisory services (mentoring) of up to 900 euros is also provided.
The Microcredit Fund will provide interest-free financing at a rate of 60% for general entrepreneurship or 75% for women’s entrepreneurship.
It is estimated that up to 3,300 enterprises will be supported, of which up to 1,000 enterprises within the framework of women’s entrepreneurship.
The Hellenic Development Bank – HDB has undertaken the management of the new financial tool, within the framework of the Portfolio Fund “Entrepreneurship Fund III (TEPIX III).”
