Banks start lending non-interest-bearing loans to individuals


The Bulgarian Development Bank has signed agreements with the first four credit institutions to begin work on the Interest-Free Credit Guarantee Program to support people deprived of their ability to work because of the COVID-19 pandemic. These are Investbank, International Asset Bank, Municipal Bank and First Investment Bank.

The program aims to support unpaid employees and self-employed persons who are temporarily unable to work in a state of emergency. They have the opportunity to receive interest-free loans of up to BGN 4,500.

The first bank to start accepting documents on Monday, April 27, is the Municipal Bank. After Wednesday, April 29, they will be able to apply for the program and clients of Investbank. International Asset Bank will review documents from May 4 and First Investment Bank from May 5.

The interest-free loan guarantee program was adopted by Decision of the Council of Ministers 257 / 14.04.2020 as part of the crisis measures of the Bulgarian government in defense of the self-employed and employed. Partners in it will be 12 commercial banks, which will grant interest-free loans of up to BGN 4,500 at a time or in three tranches of BGN 1,500 each. The loans will be unsecured and there will be no fees, commissions and penalties. The maximum repayment period is 5 years, with a minimum of 6 months and a maximum of 24 months grace period.