Regional loan


A regional loan can be used to provide co-financing for investments in tangible and intangible fixed assets together with a bank or leasing company.

The target group involves small and medium-sized enterprises (SMEs) investing outside Tallinn and Tartu.

NB: A Regional loan can only be used to finance projects that have not yet been fully implemented by the time the financing decision is taken.

KredEx introduced the terms and conditions for the regional loan on 7 April, during an Estonian language webinar. 
See the webinar recording here.


  • This is a subordinated loan, which helps to increase the project’s self-financing for the credit institution.
  • For the company, self-financing is lower than usual and, in some cases, even unnecessary.

For who?

Ettevõtte rahastamiseks

starting enterprise
established company
exporting company

Service is suitable if

  • the company is sustainable and solvent and
  • the company’s equity complies with the requirements of the Commercial Code and
  • the company’s equity capital and self-financing combined comprise at least 50% of the amount of the regional loan being sought and
  • the company has been entered in the Estonian Commercial Register and has no outstanding and deferred debts and
  • the company’s management board members are trustworthy and competent.

Important conditions


Loans will not be granted to the following activities and entrepreneurs:
  • primary production of agricultural products, fisheries and aquaculture, and forestry
  • manufacturing, processing, and marketing of tobacco (and related products)
  • manufacturing, processing, and marketing of weapons and ammo
  • acquisition of means of transport or equipment used for road freight transport
  • acquisition of passenger cars
  • real estate development projects aimed at sale and lease. If the real estate is developed for the company’s own activities, including the activities of its subsidiaries and affiliates not related to real estate development, it is allowed to lease part of the space, provided that the rental income (except from subsidiaries and affiliates) does not exceed 30% of the annual turnover of the loan applicant
  • entrepreneurs operating in the field of gambling
  • fields of activity related to pornography, illegal data downloading, and provision of illegal access to data networks
  • research and development in the field of health aiming to clone humans for research or treatment purposes or to develop genetically modified organisms
  • funding to encourage the use of domestic products instead of imported ones
  • export-related activity directly connected to the current expenditures of exported quantities, the establishment or functioning of a distribution network, or other operating costs arising from export if de minimis aid is being granted with the issuance of a guarantee
  • decommissioning or construction of nuclear power plants
  • investments to reduce greenhouse gas emissions from activities listed in Annex I to directive 2003/87/EC
  • investments in airport infrastructure, unless they relate to environmental protection or are accompanied by investments required to mitigate or reduce the negative environmental impact of airport infrastructure
Loan amount

Up to EUR 500 000, but not more than 50% of the project cost.

Loan interest

In general, if KredEx finances:

  • up to 20% of the cost of the project, the interest rate is equal to the interest rate of the credit institution;
  • 20,01–30% of the cost of the project, the interest rate is the interest rate of the credit institution + 1 percentage point;
  • 30,01–40% of the cost of the project, the interest rate is the interest rate of the credit institution + 2 percentage points;
  • 40,01–50% of the cost of the project, the interest rate is the interest rate of the credit institution + 3 percentage points.
Loan period

Up to 15 years.

Contract fees
  • There is no fee for the conclusion and early termination of the contract.
  • The contract amendment fee is 0.2% of the loan balance.
Loan guarantee

A separate guarantee is usually not required for a regional loan, or a mortgage or commercial pledge is established as a last resort.

Repayment of loan
  • Until the expiry of the loan contract concluded with the credit institution, the principal instalments of the regional loan are subject to a grace period and only interest is payable.
  • After the expiry of the loan contract with the credit institution, the regional loan will be repaid in equal instalments according to a schedule.


Good to know

  • Information on crisis measures to alleviate the liquidity difficulties caused by the COVID-19 outbreak can be found HERE.
  • You can only apply for a loan from KredEx if the bank or leasing company has made a positive financing decision on your application.
  • The services provided by KredEx may include state aid, including de minimis aid. Read more HERE in the ‘State aid and de minimis aid’ section.
  • Read more about the services targeted at Enterprise Estonia HERE.

Application process

In order to apply for a regional loan, first contact your bank or leasing company for a decision on whether to receive a decision on granting a bank loan or lease.

If the decision from the bank or leasing company is positive, a bank officer (generally) fills in the regional loan application (you can enter the e-services environment using your ID-card or Mobile-ID), attaching the following documents:

  • financial projections in a format accepted by KredEx
  • business plan, including the investment project plan
  • decision of the competent body of the bank or leasing company to issue the loan or lease
  • (audited) annual report for the last financial year
  • interim report for the current financial year, which is no more than two months old at the time of submission of the application
  • CVs of the company’s key personnel

Contact us

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 Stepin

Junior Client Manager

karmen.stepin [at]

Marek Tiivel

Client Manager

marek.tiivel [at]