Unlike conventional loans, these microloans will bypass banks, streamlining the process and increasing flexibility. The loans will be interest-free for 60% of their amount for general business ventures and 75% for female entrepreneurship. The remaining 40% or 25%, respectively, will be provided by specialized microfinance organizations.
Currently, three licensed institutions are operating in Greece: TMEDE Microfinance Solutions, Microsmart, and AFI Microfinance S.A.. All are authorized by the Bank of Greece, which plans to grant additional licenses soon.
According to a recent ministerial decision signed by Deputy Minister of National Economy and Finance Nikos Papathanasis, the program will disburse loans totaling €80 million. This follows an operational agreement with the Hellenic Development Bank (HDB), tasked with creating and managing this financial tool under the Entrepreneurship Fund III (TEPIX III) portfolio.
The loans will range from €3,000 to €25,000 and can be used for working capital or funding investment plans. In addition to subsidized interest rates, the loans come with advantageous terms, including no requirement for collateral. They will have a repayment period of 12 to 96 months, with a grace period of up to six months.
In total, approximately 3,300 businesses are expected to benefit from the program, including 1,000 businesses led by women.
Under the law, these funds can be used to cover all types of credit needs, including investment financing and working capital. They can also be applied toward financial leasing products for equipment acquisition or standalone guarantees that cannot be used to secure loans from other financial institutions.
