Bulgarian Development Bank, UniCredit BulBank Sign Agreement on Provision of Interest-free Loans to Individuals Experiencing Financial Hardships due to COVID-19
May 19 (BTA) - The Bulgarian Development Bank (BDB) and UniCredit BulBank signed an agreement on a guarantee programme for the provision of interest-free loans to individuals on unpaid leave and to self-employed persons, BDB said in a press release Tuesday.
Applications for loans under the programme start to be accepted on May 19.
Two other banks, Allianz Bank and D Commerce Bank, too accept applications for interest-free loans as of May 17.
A total of 6,719 applications have been made so far for loans under the programme. Two-thirds of them are from persons with employment contracts, and one-third, from self-employed people.
The total amount of the approved loans is 10,989,500 leva. The average amount of a single loan is 4,200 leva, while the maximum amount has been set at 4,500 leva.
The eligible applicants are employees on unpaid leave and self-employed people who cannot work due to COVID-19 restructions. The interest-free loans are disbursed in a lump sum or in three instalments. The term for repayment is five years, with a grace period from six to 24 months. No fees or indemnities are charged. RI/ZH