HBOR and HAMAG-BICRO loans with interest rates below 1% (April 2023)

Note, 30 October 2026. This text was published on 19 April 2023 and refers to the HBOR programme Investments of Special SME Segments under the NPOO, with a fixed interest rate of 0.80%, or 0.40% for green, digital and RDI investments. HBOR accepted applications for that programme until 31 July 2024, and contracts could be signed no later than 30 June 2026. The ECB rates and the savings example in the text refer to March and April 2023. Current programmes and rates are in our guide HBOR loans for entrepreneurs 2026.

In Croatia, the interest rate at which entrepreneurs borrow is one of the key variables for business as a whole. Looking back at the not-so-distant past, we recall the global financial crisis of 2008, which hit the whole world and was followed by the era of cheap loans. In an effort to stimulate economic growth and avoid deflation, many central banks around the world cut their key interest rates to the lowest levels in history. These low interest rates created favourable conditions for loans for many entrepreneurs, and also for households that decided to buy property. It is well known that the economy moves in almost regular cycles, and between the Second World War and 2008 there were 14 of them. Since high inflation has hit the whole world, central banks must react to curb it.

Based on projections that inflation would remain excessively high for too long, the Governing Council of the European Central Bank (ECB) was determined to take steps to return inflation to its medium-term target of 2% as soon as possible, and therefore in March 2023 it decided to raise the three key ECB interest rates by 50 basis points. Accordingly, the interest rate on the main refinancing operations will be 3.5%, the interest rate on the marginal lending facility 3.75%, and the interest rate on the deposit facility 3%. In this sense, the period of cheap loans can be considered over. However, there are still favourable credit lines for those who want to finance their investments on very favourable terms.

In April 2023 it was still possible to finance investment projects at interest rates below 1%. What matters is recognising the opportunity and meeting the conditions of the investment lines of HAMAG-BICRO (Croatian Agency for SMEs, Innovations and Investments) and HBOR (Croatian Bank for Reconstruction and Development)

That is why it is important to ask whether entrepreneurs in Croatia are ready for rising interest rates or have recognised the benefits of favourable credit lines in time. For example, crowdfunding is becoming increasingly popular among Croatian entrepreneurs as an alternative to traditional bank loans. This form of financing allows entrepreneurs to communicate directly with investors, which reduces intermediary costs and gives them greater control over the financing.

The European Central Bank can raise interest rates faster than Croatia can reduce its risks and improve its credit rating, so at some point the rise in European interest rates will prevail and loan interest rates in Croatia will also start to rise. Given the inevitable increase in interest rates, it is important that Croatian entrepreneurs recognise alternative sources of financing as soon as possible and prepare for a possible further rise in interest rates. This means carefully studying the market for financial products and services and actively looking for the best solutions to finance their business projects.

Some entrepreneurs finance themselves through EU calls, which remain extremely attractive because entrepreneurs receive grants (non-repayable funding) for the projects they apply with. We expected this trend to continue with the publication of calls from the new 2021–2027 programming period.

There were also other alternative credit lines, such as HBOR and the attractive HAMAG-BICRO loans, with attractive interest rates that are below 1% and fixed. Since the HAMAG loans were used up very quickly, it can be concluded that some entrepreneurs opted for these attractive lines, but at that time it was still possible to use investment loans on considerably more favourable terms than “commercial” ones.

A good investment study and qualified advisers are key to having a loan approved by any financial institution (e.g. commercial banks, HBOR, HAMAG-BICRO). An investment study is a comprehensive document that contains detailed information about the planned investment, such as costs, revenues, risks and return on investment. The financial institution uses this study as the basis for deciding whether or not to grant the loan.

Our team made an indicative calculation and comparison between a commercial bank and HBOR for an investment loan of EUR 300,000, with a repayment period of 10 years and no grace period. The difference between the total cost of a regular loan from one commercial bank and the HBOR loan (Investments of Special SME Segments under the NPOO, Investicije posebnih segmenata MSP-ova u okviru NPOO-a) is more than EUR 81,000. In other words, from the difference in total interest alone, the entrepreneur can save as much as EUR 78,000 over the entire repayment period of the loan.

The calculation is based on interest rates from April 2023. Compare today’s terms of an HBOR loan and a bank loan in our HBOR loan calculator, the programmes and rates that apply in 2026 are in the guide HBOR loans for entrepreneurs 2026, and how up to 50% of the principal turns into a grant is explained in the article on the capital rebate.

Guide: HBOR loans for entrepreneurs 2026

• HBOR loans for entrepreneurs 2026: all programmes, interest rates, principal write-off of up to 50%, repayment of up to 20 years and documentation.
• HBOR loan for production modernisation 2026 (Krediti za modernizaciju proizvodnje): from EUR 100,000 to 3 million, half at 0% interest, and a principal write-off of up to 50%.
• HBOR loans: advice and application preparation: what the application requires and how we work.

>> All 2026 guides in one place

For more information and help in preparing documentation to apply for HBOR and HAMAG-BICRO investment loans, contact us at info@omniasolutions.hr