“We have extended financing periods and increased the flexibility of required collaterals for loan coverage. Our clients are now able to access loans without having to justify the purpose of funds up to €100,000. Moreover, for loans up to €50,000, clients are not required to provide real estate collateral,” said Cristina Copaci, ProCredit Bank’s Head of Loan Department. SMEs can now access ten-year loans for mixed investments, loans for financing real estate investments for periods of up to 15 years, and seven-year loans to acquire equipment and cars.
As the bank is interested in obtaining a significant SME segment market share, ProCredit bankers are not requiring feasibility studies, business plans, or down payments. Furthermore, one financial product may cover multiple purposes. For example, the money obtained from a single loan may be used to pay suppliers, taxes, and investments. By the end of August 2007, ProCredit’s portfolio included more than 37,500 ongoing loans, whose value amounted to €207.7 million, a 34 percent increase in terms of number, and a 54 percent rise in value, compared to the first eight months of 2006.
ProCredit registered a solid performance in the agricultural sector, where the lender registers over 8,000 ongoing loans, with a value of some €30 mln.
The bank was founded in 2002, following the partnership between the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (the World Bank’s investment division - IFC), German Commerzbank, KfW financial institutions, IPC (a leading provider of mission-critical communication solutions to the world’s largest financial services companies) and ProCredit Holding.
