Capital loan


A capital loan is a subordinated loan that is useful when a company wishes to fund rapid growth with a loan but lacks the self-financing or sufficient collateral required by the bank.

The loan is aimed at financing activities for the purpose of increasing the company’s competitiveness through development or expansion.


  • Similarly to the owner, KredEx provides the business with capital that, due to its subordinated status, increases the level of self-financing in the eyes of other financing sources. This in turn allows the company to raise additional financing, such as ta

For who?


established company
exporting company

Service is suitable if

  • the company is entered into the Republic of Estonia’s Commercial Register.
  • if the company lacks undeferred indebtedness that is past due.
  • if the company is sustainable and solvent.
  • if the company’s equity capital meets the requirements set forth in Commercial Code.
  • if the company’s key persons are trustworthy and competent.
  • if the amount of the company's equity capital is at least 100,000 euros and the equity capital makes up at least 10% of the balance sheet volume.
  • the loan service coefficient is at least 1.1 according to conservative estimates

* KredEx may count loans subordinated to the KredEx loan granted to the company toward equity capital

Important conditions

Loans will not be granted for the following activities and undertakings:
  • Primary production of agricultural products, fishing and aquaculture and logging, not including activities related to timber processing.
  • Firearms and tobacco industry.
  • Acquisition of trucks for road transport if the aid provided by issuing the loan constitutes de minimis aid.
  • Circulating capital for retail and wholesale traders.
  • Real estate development projects for the purpose of sale and leasing out. If the real estate development takes place for the purpose of activities unrelated to the company’s own real estate development, including that of subsidiaries and affiliates, it is permitted to let out part of the premises. In such a case, rental receipts, not including from subsidiaries and affiliates, may not exceed 30% of the loan recipient's yearly turnover.
  • Export-related activities that are directly related to quantities to be exported, establishing and operating a distribution network or other current costs stemming from exporting, if the issuing of the loan provides de minimis aid.
  • The company’s owners include companies registered in tax havens.
Loan amount

Up to 2,000,000 euros, but not more than the amount of the company’s equity capital as of the issuing of the loan. The proportion of a capital loan may be up to 67% of the project being financed.

Loan period

Loan period - In general, 3 to 5 years, not to exceed 10 years.

Grace period - In general, up to 3 years, not to exceed 7 years.

Interest rate

In general, between 8.5–15%. The final interest rate depends on the risk level of the business and the project and collateral.

The interest rate may consist of two components: fixed rate interest and an interest rate linked to the success of the company. Payments of fixed interest are to be generally made each month, and the share of interest payable periodically is approximately 67% of the total interest. The interest linked to the success of the company is to be paid at the end of the loan period.

Contract fees

Contract signing fee - 1% of the loan amount, not to exceed 10,000 euros.

Contract amendment fee - 0.2 % of the loan balance.

Loan recipient’s main obligations

The recipient undertakes to do the following, among other duties:

  • File quarterly activity and finance reports with KredEx.
  • Appoint, if KredEx so requests, a KredEx representative to the company’s supervisory board.
  • Coordinate with KredEx any additional obligations, investments and asset transfers that exceed the limits specified in the agreement.
Premature termination of loan agreement:
  • The recipient must notify KredEx at least 3 months in advance if it wishes to repay the loan prematurely.
  • If the premature repayment of the loan takes place 24 months or less after the issuing of the loan, the recipient shall pay KredEx an additional fee – 12 months’ interest on the part of the loan repaid early.
  • If the premature repayment of the loan takes place more than 24 months but less than 36 months after the issuing of the loan, the recipient shall pay KredEx an additional fee –interest on the repaid loan for the period short of 36 months.

Good to know

  • You can find more information about the crisis measures intended to alleviate liqiuidity difficulties caused by the COVID-19 outbreak ON THIS PAGE
  • If it is desired to take a bank loan as well as a capital loan in order to fund a business plan, it is advisable to contact the bank at the same time as making the inquiry to KredEx so that we can coordinate the loan conditions.
  • If the decision from the bank or leasing company is positive, an application must be completed for seeking an industry loan (entering the e-services environment requires an ID card or mobile-ID), to which the following is to be appended:
    • financial forecasts on the KredEx form
    • business plan, including investment project plan
    • (audited) annual report for the last financial year ended
    • interim report for the current financial year, not older than 2 months as of submission of application
    • CVs for the company’s key persons
  • Find out more about Enterprise Estonia’s services for businesses here

Application process

To apply for a capital loan, an application must be completed for seeking an industry loan (entering the e-services environment requires an ID card or mobile-ID), to which the following documents are to be appended.


Contact us

Mihhail Knut

Mihhail Knut

Client Manager

mihhail.knut [at]
Natalja Pauku

Natalja Pauku

Client Manager

natalja.pauku [at]
Jaak Tikko

Jaak Tikko

Client Manager

jaak.tikko [at]
Tiina Kalme

Tiina Kalme

Client Manager

tiina.kalme [at]
Argo Suurkask

Argo Suurkask

Client Manager

argo.suurkask [at]
Karmen Piip

Karmen Piip

Junior Client Manager

karmen.piip [at]