Microcredit for farmers in Republika Srpska: who lends, what to compare, who supervises

A farmer or rural household owner who needs a smaller sum for seedlings, machinery or guest rooms can borrow from a microcredit organisation (MKO), not only from a bank. Below are the legal rules and what to check before signing. We do not recommend specific products or rates, because they differ between lenders and change over time.

In short

• A microcredit is a loan of up to 50,000 KM from a microcredit company, or up to 10,000 KM from a microcredit foundation. All loans of the same borrower from one organisation or from related organisations are added together.
• Only an organisation that holds a licence from the Banking Agency of Republika Srpska (Agencija za bankarstvo Republike Srpske) and is entered in the court register may give microcredit.
• An MKO may not take deposits or savings.
• Compare offers by the effective interest rate (EKS): the total cost of the loan as a yearly percentage.
• The Agency keeps a public register of MKOs and supervises them.

Who it applies to

Anyone taking a microcredit: individuals, farmers, sole traders and companies. The special borrower protection in the Law on Microcredit Organisations (Article 17) covers an individual who borrows for non-business purposes. Under Article 17(6) the same protection applies accordingly to sole traders in craft and entrepreneurial activity, to sole traders engaged in agricultural production on a farm and to holders of a family farm, when the microcredit is between 400 and 10,000 KM. Loans above 10,000 KM and loans for guest accommodation run as a sole trader business are not covered, so you need to read such a contract carefully yourself. If you are not sure whether your case is covered, ask the Agency.

What to do

1. Check in the Agency register that the lender is licensed. On 7 October 2026 the register of organisations based in Republika Srpska lists 15 organisations, based in Banja Luka, East Sarajevo and Bijeljina. MKOs from the Federation of BiH and Brčko District may operate in Republika Srpska through branches, but only with an Agency licence. They are listed in a separate register in the same section of the Agency website ("MKO sa sjedištem u Federaciji BiH"), which lists eight organisations.
2. Ask several lenders for an offer and the EKS for the same amount and term. The lender must calculate the EKS and make it available to clients and the public. In adverts and in branch offices the EKS must be clearly displayed and no less visible than other information.
3. Also compare the repayment period, collateral (guarantor, pledge) and fees. The nominal rate alone does not show the full price of the loan.
4. Before you sign, the lender must tell you the EKS and give you access to all key terms.
5. At signing you receive a repayment plan with the EKS clearly stated. The plan is part of the contract. The contract must state that you were informed of the terms and the EKS and that you received the plan.
6. If an element used to calculate the EKS was agreed as variable and it changes, the lender must send you a revised repayment plan.

The EKS rules in steps 2 to 6 are set by the Agency and apply to all MKO clients, not only to individuals. The duty is not new: the current decision dates from 2018 (Službeni glasnik RS Nos. 75/18 and 117/22). Since 1 December 2022 these rules cover every microcredit above 400 KM, whatever the repayment period. Before that they covered microcredits of at least 400 KM with a term longer than 30 days. The EKS is shown as a percentage with two decimal places.

Where to go

• Agencija za bankarstvo Republike Srpske, Vladike Platona 1/A, Banja Luka, tel. +387 51 224 079, office@abrs.ba. MKO register: abrs.ba, MKOs based in RS.
• The Banking System Ombudsman (Ombudsman za bankarski sistem) at the Agency settles disputes between users and providers of financial services out of court: abrs.ba/ombudsman. First complain to the lender itself. If it does not answer within 30 days or you are not satisfied, you can complain to the Agency within six months, using the online form or portparol@abrs.ba. Attach your first complaint, the lender's answer and a copy of the contract. The procedure is free. Ask the Agency whether it also handles complaints about a loan taken for a registered business.
• For loans with subsidised interest and for guarantees, see the article "IRB RS loans and Guarantee Fund guarantees for farms and rural tourism".

Laws and sources

• Law on Microcredit Organisations (Službeni glasnik RS Nos. 64/06, 116/11 and 67/26), Articles 3, 4, 5, 10, 13, 16 and 17. The 67/26 amendment applies from 1 January 2027. Of the articles cited, it changes only Article 4(2): loans granted in connection with payment services are added to the borrower's total. It also lets microcredit companies issue e-money and provide payment services.
• Decision on the uniform calculation and disclosure of the effective interest rate on microcredits (Službeni glasnik RS Nos. 75/18 and 117/22)
• Amendment to the Decision on the uniform calculation and disclosure of the effective interest rate on microcredits, No. UO-384/22 of 15 Nov 2022 (Službeni glasnik RS No. 117/22), applied from 1 Dec 2022
• Decision on conditions and procedure for issuing licences, approvals and consents to microcredit organisations, Banking Agency of RS, 25 Feb 2026