EXTENDED INVESTMENT LOAN (EURO)

Request for ROMCOM credit 2025

Lender

The extended investment loan granted in Euro is provided through the Microfinance Society IFN ROMCOM SA (hereinafter referred to as “ROMCOM”).

Purpose of the loan product

• Supporting investments made by newly established businesses and microenterprises, as well as investments for the modernization and re-technology of small and medium enterprises in production and services sectors, increasing the volume of activity, competitiveness, and sustainability of businesses in these sectors.
• Supporting investments made by agricultural entrepreneurs in Romanian agriculture, increasing the competitiveness of Romanian agricultural products and creating new jobs.

Eligibility Criteria

The extended investment loan granted in Euro is primarily aimed at entrepreneurs from the following counties: Bihor, Timiș, Arad, Sălaj, Satu Mare, Cluj, Maramureș, Suceava, Caraș Severin (ROMCOM can also provide funding to entrepreneurs from other counties, depending on available funds).

Entrepreneurs who meet the following cumulative eligibility criteria can benefit from financing through the ROMCOM program:

General criteria:

• Private commercial company, registered and authorized (PFA, II, AF, IF, SRL, SCS, SA), including newly established businesses (start-ups), liberal professions, and NGOs with profit-driven activities;
• Development of a clear business concept, to be outlined in the financing application;
• Qualification or professional experience of the administrators/employees of the applicant in the field of activity in which they are requesting financing.

Specific criteria:

• Existence of the necessary infrastructure for the project (land, building, utilities, etc.);
• Maintenance/Creation of jobs as a result of the project implementation;
• Economic feasibility of the project;
• Existence of a guarantee that covers at least 150% of the loan value;
• The financed company generates income in Euro or indexed to the Ron/Euro exchange rate.

Eligible Activities

The obtained funds can be used for the following purposes:

• Purchase of licenses, software, machines, equipment, new or second-hand machinery;
• Modernization and expansion of production capacities;
• Investments in the acquisition, construction, modernization, and/or expansion of business infrastructure (buildings, production halls, stables, warehouses, greenhouses, etc.);
• Investments related to increasing energy efficiency, transition to carbon-neutral activities and/or green infrastructure;
• Purchase of breeding animals (milk, meat production, etc.).

Financing Conditions

• The amount that can be granted to an eligible entrepreneur through the extended investment loan in Euro ranges from 2,500 to 60,000 Euros. Repayment is made in monthly installments.
• For the extended investment loan granted in Euro, ROMCOM charges an annual interest rate of 16%, applied to the loan balance. The interest rate remains unchanged throughout the loan period. Customers who have or have had ongoing loans from ROMCOM and have a good payment history can receive a 1% interest rate reduction.
• The repayment period of the extended investment loan granted in Euro ranges from 3 to 96 months.
• Depending on the case, a grace period of up to 6 months may be granted, included in the repayment period, during which only monthly interest will be paid.
• Also, depending on the nature of the financed activity, the loan may have an atypical repayment schedule, where the total principal repayments in a year are distributed into higher payments during the season and lower payments in the off-season. In the case of atypical schedules, the interest is paid monthly.
• The Effective Annual Rate (EIR) is 17.97%, calculated for an extended investment loan of 60,000 Euros, granted with an annual interest rate of 16%, applied to the loan balance, for a period of 96 months, with monthly equal installments and no grace period.

Fees and Guarantees

• After the financing is approved, the beneficiary will pay a 2% fee on the loan amount, which will be deducted upon disbursement of the loan.
• The loan will be secured with immovable or movable assets, covering at least 150% of the loan value.
• Depending on the credit scoring of the financing request, the real guarantees may be supplemented with personal guarantees, in the form of bills of exchange and/or guarantees.
• Notary fees, lien or mortgage registration, and the cost of insuring the collateral (if applicable) will be borne by the borrower.
• An early repayment fee will be charged for full early repayment, calculated based on the value of the early payment. The early repayment fee is as follows: 5% if the early repayment occurs within the first 12 months from the date of signing the loan contract; 4% if the early repayment occurs within a period longer than 12 months and shorter than 25 months from the date of signing the loan contract; 3% if the early repayment occurs within a period longer than 24 months and shorter than 37 months from the date of signing the loan contract; 2% if the early repayment occurs within a period longer than 36 months and shorter than 49 months from the date of signing the loan contract; 1% if the early repayment occurs within a period longer than 48 months from the date of signing the loan contract.
• For partial early repayment of at least 10% of the loan value, an early repayment fee will be charged, calculated based on the value of the early payment. The early repayment fee is as follows: 5% if the early repayment occurs within the first 12 months from the date of signing the loan contract; 4% if the early repayment occurs within a period longer than 12 months and shorter than 25 months from the date of signing the loan contract; 3% if the early repayment occurs within a period longer than 24 months and shorter than 37 months from the date of signing the loan contract; 2% if the early repayment occurs within a period longer than 36 months and shorter than 49 months from the date of signing the loan contract; 1% if the early repayment occurs within a period longer than 48 months from the date of signing the loan contract.
• The early repayment fee can be reduced by 50% if the loan does not accumulate late penalties and the repayment is made from own sources (excluding refinancing).
• The assets or properties used to secure the loan will be insured upon signing the loan contract for the entire duration of the loan. The cost of the insurance will be borne by the borrower, and the insurance will be assigned in favor of the Microfinance Society IFN ROMCOM SA.

Deadlines and Documentation Submission Conditions

To obtain an Extended Investment Loan in Euro, applicants must contact the Microfinance Society IFN ROMCOM SA. Loan applications can be submitted by mail/courier to the ROMCOM office, directly at the ROMCOM office, taken directly by ROMCOM credit consultants, or sent by email to office@romcom.ro.

Credit applications will be reviewed, and projects to be financed will be selected within a maximum of 7 days from the receipt of a complete loan application.

Contact Information

The contact information for submitting the loan application is:

Microfinance Society IFN ROMCOM SA
Gh. Doja Nr. 49A, Oradea, 410169
Phone: 0259 479 793, 0359 173 300
Email: office@romcom.ro
www.romcom.ro