Micro Loan

An application can be submitted by a company:

1. registered and operating in Estonia, with a turnover and/or balance sheet total of up to 2 million € per annum
2. employing up to 9 people (inclusive)
3. whose operator, owners and management board members have had no overdue deferred debt in the past two months

Kindly submit your micro loan application and annual report along with your balance sheet and profit and loss account, up to 2 months old, via e-mail to mikrolaen@lhv.ee.

• The company’s equity must be over 25% of the balance sheet total.
• The company must not be loss-making.
• The debt-service coverage ratio (DSCR) of the company must be greater than 1.2. This indicator is calculated by adding the company’s operating profit for the period to the depreciation for the same period (the result is called EBITDA), and the free cash flow obtained is divided by the loan repayments for the same period. A value of the indicator below 1.2 indicates a cash flow shortfall (cash flow not covering loan repayments), whereas a value of 1.2 suggests that the company’s free cash flow perfectly covers the repayments under its current loan obligations but that there is no buffer for any potential risk scenarios. A value over 1.2 indicates that the company’s free cash flow covers its current loan obligations (e.g. a value of 1.4 signifies that free cash flow exceeds loan repayments by 40%).

The period of a micro loan is 12 to 72 months.

We will e-mail you a pre-completed loan contract. The authorised representative is requested to sign the contract digitally and return it to us.

Yes, a micro loan can be repaid before its term. If you provide three months’ advance notice of your intention to repay the loan early, there is no fee for early repayment. If you want to repay the loan before the three month notification period, a fee of 3% of the sum returned prematurely is applied. If you wish, you can e-mail a free-form application to mikrolaen@lhv.ee.

Yes, the period of a micro loan can be extended. If you wish, you can e-mail a free-form application to mikrolaen@lhv.ee.

Unfortunately, this is not possible.

Unfortunately, no grace period is available on a micro loan.

Interest on a micro loan begins from 6%, to which 6-month euribor is added. Interest depends on the company’s profile, risk level and loan servicing ability. euribor changes every 6 months, as a result of which the interest on the micro loan and, accordingly, the loan repayment change as well.

The contract fee is 1.5% of the loan amount taken out but not more than 300 €.

Once the company’s application and necessary financial information have reached us, we will normally advise the applicant of our loan decision on the following business day.

Generally, the micro loan is transferred into the company’s account on the business day following the signing of the loan and surety contracts.

There are none. This loan is designed for all kinds of development activities related to a company.

First, a loan repayment schedule will be prepared for the company. Monthly loan repayments have to be made by the client on the dates and in the amounts indicated on the schedule. This means that on the payment date the company’s account will be debited by the amount indicated on the schedule. For this, no separate invoice will be sent.

Micro loans can be applied for in amounts up to 50,000 €.

A guarantee by a private individual or company is accepted as collateral.

Typically, the guarantor is the owner(s) of the company or a member of its management board. Another company is also acceptable is a guarantor. It is important for the guarantor to not have been in arrears in the past 2 years.

A micro loan can be applied for on multiple occasions if the outstanding loan balance does not exceed 50,000 €.

Yes, the repayment term can be modified. If you wish, you can e-mail a free-form application for this to mikrolaen@lhv.ee. The contract amendment fee is 100 €.

Where a loan repayment is not made by the payment date, a reminder will be sent in the form of a letter. Given that a fine for delay will also have to be paid in the event of delayed payment, it is advisable to notify us about any payment difficulties immediately. Together, we will be able to identify the best solution.

No. If the company’s loan application is granted, the company will have to open an account at LHV Pank.