IRB RS loans and Guarantee Fund guarantees for farms and rural tourism

The Investment-Development Bank of Republika Srpska (Investiciono-razvojna banka RS, IRB RS) and the Guarantee Fund of Republika Srpska (Garantni fond RS) offer cheaper loans and guarantees to farms, entrepreneurs and companies in Republika Srpska. This concerns farmers and people starting a business in rural, hunting, fishing and eco-tourism.

In short

• IRB RS does not lend directly: you apply to a bank or microfinance organisation from its list of intermediaries (e.g. Addiko, UniCredit, NLB, ProCredit, Naša banka).
• Agricultural micro-business loan: 5,000 to 500,000 KM, up to 10 years, grace period up to 36 months.
• Micro-business rate: 4.90%, 4.60% in underdeveloped areas, 3.0% for new technology (with conditions). Valid until 31 March 2027.
• The intermediary may charge fees of up to 0.5% (individuals) or 1% (legal entities) of the approved amount.
• The Guarantee Fund gives banks a guarantee as part of the security. For starting rural, hunting, fishing and eco-tourism the guarantee is up to 50,000 KM, up to 3 years.

Who it applies to

• Farms entered in the Register of Agricultural Holdings (Agencija za agrarna plaćanja, APIF, confirmation), entrepreneurs and legal entities in agriculture and fishing.
• For tourism: farms, entrepreneurs and legal entities starting activity in rural, hunting, fishing and eco-tourism.
• Seat or activity in Republika Srpska.

What to do

1. Choose an intermediary from the list on irbrs.org and check its conditions and collateral, which the intermediary sets.
2. Prepare the application and the documents the intermediary requires. A farm needs the APIF confirmation of registration.
3. If collateral is short, ask the intermediary about a Guarantee Fund guarantee. The bank (intermediary) requests the guarantee together with your loan application. Before that you can ask the Fund directly for a letter of intent (pismo namjere); forms are on garantnifondrs.org.
4. For the guarantee the Fund charges a premium: for the tourism line 1.00 to 1.60% of the guaranteed amount, calculated quarterly in advance. Coverage (the share of the loan the Fund guarantees) depends on the loan's maximum interest rate: 40 to 50% at a rate up to 6.99%, and at most 14.99% at a rate of 8.20% or higher. The lower premium (1.00%) goes with the lowest cover, the higher one (1.60%) with 40 to 50% cover. The Fund's site has a calculator for an approximate cost.

Deadlines and amounts

• Agriculture loan (legal entities, entrepreneurs and agricultural holdings): 10,000 to 5,000,000 KM, up to 12 years, grace period up to 36 months. Base rate 4.6%, 4.3% in underdeveloped areas, 3.0% for new technology (intermediary margin up to 2.5 points, at least 40% of the loan for new technology). Purposes: fixed and working capital, tax obligations, refinancing.
• Guarantee for registered agricultural holdings: up to 500,000 KM; guarantee for agriculture (legal entities): up to 1,500,000 KM.
• IRB RS interest rates are valid until 31 March 2027. The IRB RS and Fund pages give no application deadline, but check with the intermediary that the line is open.

Where to go

• Investiciono-razvojna banka RS, Banja Luka: micro-business loan +387 51 334 738 or +387 51 334 741; agriculture loan +387 51 334 736 or +387 51 334 746; irbrs.org.
• Garantni fond RS, Vidovdanska 2, 5th floor, 78000 Banja Luka: +387 51 231 390 or +387 51 231 380, info@garantnifondrs.org, garantnifondrs.org.
• Ask an intermediary in Trebinje whether it works with the IRB RS line.

Laws and sources

• IRB RS: Loans for micro-business in agriculture
• IRB RS: Loans for agriculture
• IRB RS: Loans for entrepreneurs and companies
• Guarantee Fund RS: home page
• Guarantee Fund RS: guarantee lines
• Guarantee line for starting rural, hunting, fishing and eco-tourism