START-UP WINDOW

GUARANTEE FOR A NEW BEGGINING!

The Start-Up Window aims to facilitate access to finance for start-up enterprises through tailor made financial products, in order to ensure  growth of newly created businesses as well as to increase the employment, thus improving the living standard of the population.

The Start-up window is dedicated to start-up businesses engaged mainly in economic activities/sectors that require basic knowledge. Basic knowledge refers to skills developed through previous education, training or work experience. This window provides favorable conditions in terms of credit risk, to increase the confidence of Registered Financial Institutions in lending to this important segment of the market, which through financial support will ensure market positioning, market expansion internationally, generating employment as well as supporting the economic development of our country.

The special feature of this window is that, in addition to the financial component, it will also offer the non-financial component or the technical assistance program for new businesses which will be supported in terms of:

• Capacity building (financial education and formalization)
• Networking
• Mentoring.

INTERMEDIARIES

Registered Financial Institutions of KCGF are:

    • Banka Ekonomike Sh.A.
    • BKT Kosova Sh.A.
    • Banka per Biznes Sh.A.  
    • ProCredit Bank Kosovo J.S.C.
    • TEB Sh.A,
    • NLB Bank
    • Raiffeisen Bank Kosovo J.S.C.

WHICH BUSINESSES QUALIFY?

MSMEs that qualify for guarantee financing include, but are not limited to the following:

    • Privately owned MSMEs, without any Government ownership during the loan coverage period from the guarantee.
    • MSMEs with business registration.
    • MSMEs with experience from the first day of registration up to 12 months.
    • A qualified business/borrower must be owned by at least one private citizen or permanent resident of Kosovo.
    • MSME’s with less than 250 employees

WHICH LOANS CAN BENEFIT FROM THE START-UP WINDOW?

Qualified Loans fulfilling the following criteria will be eligible for StartUp Window benefits:

• The minimum loan amount is EUR 3000
• The maximum loan amount is EUR 100,000
• The maximum amount of the guarantee is EUR 80,000
• The maximum repayment term of the guaranteed loan is up to 84 months
• The purpose of the loan can be for long-term investments and/or for working capital

WHAT ARE THE GUARANTEE FEATURES?

• Guarantees will be provided for the amount of up to 80% of the loan principal
• Maximum lifetime loss limit 30%
• Warranty type: Revolving

WHAT ARE THE BENEFITS?

For MSMEs
• Increased access to finance
• More favorable conditions for entrepreneurs startup’s who will follow the training provided by KCGF
• Potentially preferable interest rates,
• Collateral reduction
• Faster processing time for loan applications
• Business sustainability

For Registered Financial Institutions
• Credit risk reduction
• Capital relief
• Loss coverage
• Increase in credit portfolio,
• Increase in income from the sales of other products,

WHAT IS THE APPLICATION AND DECISION-MAKING PROCESS?

• The potential borrower (MSME) does not apply for a guarantee at KCGF, but applies for a loan at one of the Registered Financial Institutions of KCGF,
• The Registered Financial Institution after performing the usual credit analysis by applying the approval standards and if the borrower meets the KCGF criteria, then the
relevant Financial Institution itself, will place the loan under the credit guarantee of the KCGF.