Loans worth 2.2bn RSD for beginners in business - entrepreneurs to get between 0.5m and 1.3m RSD

- The Government of Serbia adopted today (February 11, 2010) the credit program for beginners in business, worth 2.2bn RSD, for year 2010 - the Ministry of Economy of Serbia announced.

According to the announcement, thanks to these loans, 6,625 companies have been set up and over 21,000 people have been employed over the past three years. According to the credit program prepared by the Ministry of Economy, entrepreneurs will be able to take the loans ranging between 0.5 bn and 1.3m RSD for setting up their own business in 2010. The loans will be granted through the Development Fund. The annual interest rate amounts to 2.5%, while the repayment period ranges between three and five years, with the grace period of up to one year.

The priority in approval of laosn will be given to people younger than 25 who completed the training according to the programs of the National Agency for Regional Development, National Employment Agency and Business Innovation Program (BIP). The companies can get the minimum loan of 0.5m and maximum loan of 2.5m RSD - it is stated and added that the priority will be given to the companies whose founders are younger than 40.

The employees of public companies and government institutions can not apply for the loan. The loans for beginners can not be used for the programs of agricultural production, procurement of infrastructure, trade, procurement of passenger vehicles, organiation of lottery and prize games, or as loans to other people.