Holm Bank.Business.Loans for companies.Investment loan

Investment loan

Holm’s investment loan is suitable for financing company expansion plans.

Loan amount

from €25,000

Repayment schedule

up to 15 years

Interest rate

depending on loan amount and collateral

Suitable collateral

real estate and MES or EIS

Self-financing

from 0%

Contractual fee

from 1%, minimum of €250

Loan payments to fit!

We understand that applying for a loan is an important decision. If you already have a commitment that needs to be reviewed, or you are unsure whether an investment loan is the right solution for your business, get in touch with us and together we will find the best solution. Our strengths are a fast and flexible approach that takes into account the needs of the business and a long loan term of up to 15 years.

For example, if you are engaged in offering rental property and have already taken out a short-term loan, we can help by extending the loan schedule for up to 15 years. We can help you make your loan payments manageable so that your expenses and income are balanced.

It is a long-term loan with the repayment schedule of up to 15 years. Suitable collateral options are real estate, including agricultural land, and guarantees from Estonian Business and Innovation Agency (EIS) and the Estonian Rural Development Foundation (MES). You can apply for the loan via our self-service. Our specialist will review the application and make you a personalised offer.

If you have questions, need advice or would like to discuss your business plan prospects with us, please e-mail us at [email protected].

Intended purpose

new investments

Loan amount

from €25,000

Self-financing

from 0%

Length of loan contract

up to 5 years

Payment schedule

up to 15 years

Grace period

up to 6 months

Annual interest rate

annual interest rate depends on amount and collateral

Contract fee

from 1%, minimum of €250

Suitable collateral

real estate, agricultural land, guarantee provided by the person(s) related to the company, MES or EIS guarantee, or a combination of these

Requirements for the borrower

a private limited company or a public limited company registered and operating in Estonia; liquidation or bankruptcy proceedings have not been initiated against the company

In order to fulfil the due diligence obligation set for us as a bank, we ask you to identify yourself by video in Veriff OÜ. A device with an Internet connection and a working camera is required for verification. Have your ID ready and follow the step-by-step instructions on screen. We will send you an email with a personal link to verify your identity.

Frequently asked questions

1. Who can apply for an investment loan from Holm?

Legal entities registered and operating in Estonia, legal persons in public law, and self-employed persons (except self-employed persons who have been operating for less than 12 months) can apply for an investment loan from Holm.

2. How can I apply for an investment loan from Holm?

To enter into a Holm investment loan agreement, a loan application must be completed:
on Holm’s website or
in Holm’s self-service environment or
by sending an e-mail to [email protected]

3. What information must be submitted to Holm Bank to apply for an investment loan?

To apply for an investment loan, you must submit collateral property information (if available, appraisal report or sales announcement), a loan application approved by the company’s representative, the company’s financial statements (balance sheet and income statement for the last completed financial year, balance sheet and income statement for the last full quarter of the current financial year), and the ‘Legal entity form’. In order to obtain a complete overview of the company’s economic activities, also submit statements of the company’s bank account(s) for the 6 months preceding the submission of the application.
If the loan is secured by a guarantee from the owner of the company or a member of the management board, the guarantor must also sign the ‘Guarantor’s form’ and attach the guarantor’s bank account statement for the last 6 months. In order to make a loan decision, Holm may ask for additional documents or information that may be necessary for financing a specific project.

4. Why do I have to indicate the intended purpose of the loan when applying for a Holm investment loan?

One of the main purposes of applying for an investment loan is to create additional value for the company (for example, new machinery, equipment, or expansion of the product range, etc.). Based on its legal obligations, Holm would like to know what additional value the applied business loan creates for the company.

5. Why are full-year financial statements not enough to apply for a Holm investment loan?

In a changing economic environment or in the case of a fast-growing company, it may become apparent that the financial statements (balance sheet and income statement) of the last full year no longer adequately reflect the economic activities of the company. Therefore, when applying for a Holm investment loan, it is also necessary to submit financial statements for the last full quarter of the current financial year.

6. What securities does Holm accept?

Holm’s investment loan is secured primarily by a guarantee from a member of the company’s management board or owner, a guarantee from a legal entity economically related to the company, or a mortgage on real estate belonging to the company or a person closely related to the company, or guarantees through the KredEx Foundation and/or the Rural Development Foundation (MES).

7. Why is it necessary to fill in the ‘Legal entity form’ when applying for a Holm investment loan?

Pursuant to law, when applying for an investment loan, the bank is required to request the ‘Legal entity form’ to be filled in, which sets out the main information about the company and its owners. In addition, banks are required to act in accordance with the ‘know your customer’ principle to avoid the risks associated with money laundering and terrorist financing and to ensure the soundness and transparency of the economic environment.

8. Does Holm finance start-ups?

The company must have been active for at least one financial year.

9. Does Holm also finance foreign companies or their branches in Estonia?

10. Why does Holm need information about the beneficial owner of the company?

Banks must collect information on the beneficial owner to fulfil their obligations under both the Money Laundering and Terrorist Financing Prevention Act and the Tax Information Exchange Act.

11. Why is it necessary to fill in the ‘Guarantor’s form’ when applying for a Holm investment loan?

In its activities, Holm is guided by the principles of responsible lending and must also assess the guarantor’s solvency. The solvency of the guarantor must be sufficient to fulfil the obligations arising from the guarantee agreement. In order to assess the guarantor’s solvency and enter into a guarantee agreement, Holm Bank needs additional information about the guarantor contained in the ‘Guarantor’s form’.

12. Why is Holmi interested in the origin of self-financing?

Holm is interested in the origin of self-financing because self-financing shows the company’s ability to raise capital. In particular, the bank wishes to know whether the self-financing comes from the owners of the company, is related to the extension of the payment term of the suppliers (including overdue debts), or comes from other creditors.

13. Why does Holm ask for the company’s current account statements when applying for an investment loan?

Pursuant to law, financial institutions are obliged to comply with due diligence measures, which also include compliance with the ‘Know your customer’ requirements (https://pangaliit.ee/anti-money-laundering). One of the basic materials is the customer’s bank account statement, which provides an overview of the customer’s daily economic activities.

14. What happens if a company has payment difficulties in repaying an investment loan?

In the company’s economic activities, situations may arise where the company’s liquidity is limited, which results in payment difficulties. The most important thing in case of payment difficulties is to inform Holm Bank as soon as possible. The company’s arrears and the company’s entry into the Payment Defaults Register can be prevented in cooperation with the bank, in the course of which the most optimal solution satisfying both parties is reached.

15. What is a surety? Who is a guarantor?

A surety is a security given by a guarantor. The guarantor is the person responsible for the loan taken by the borrower. If the borrower fails to repay, the guarantor is obliged to pay the debt. In the case of several guarantors, all guarantors are jointly liable. The guarantor can be a citizen of the Republic of Estonia or a person with a permanent residence permit in Estonia at least 18 years of age, who must have a secure income and must not be in arrears.