Nearly two-thirds of the funds under the interest-free loan program for individuals have already been agreed upon. The funds have supported 26,221 individuals and provided funding for more than 1,200 companies. The loans are extended by nine banks under reduced requirements for security, a reduction in the interest rate and an option for a grace period of up to three years. The financial institutions granting such loans are Allianz Bank, DSK Bank, Bulgarian-American Credit Bank, Investbank, First Investment Bank, Postbank, D Commercial Bank, UniCredit Bulbank and UBB. Over 40,000 individuals have applied for interest-free loans, according to data obtained from the commercial banks, and just over 1,240 are being reviewed at present. The approved loans total more than BGN 110 million, and the average amount is BGN 4,229. Applicants can be employees who have been on forced unpaid leave or self-employed persons whose activities have been suspended due to the emergency situation caused by the pandemic.
The maximum repayment period is 5 years, with a grace period of not less than 6 months and not more than 24 months. The loans are exempt from any fees, commissions and penalties. The deadline for submitting applications under both programs has been extended to June 2021.
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Source: Bulgarian Development Bank
