Apartment building renovation loan



The loan is directed towards those apartment associations that have received a negative response to their renovation loan application from a bank or an offer with unreasonable terms (e.g. very short term, an interest rate that is significantly higher than usual).  With the help of the loan it is possible to finance renovation works and to combine the loan with reconstruction support offered by KredEx, in order to provide the apartment building with a completely new lease of life.


  • Energy savings
  • Healthy indoor climate
  • Like a new residential building

For who?


apartment association

Service is suitable if

  • the loan recipient is an apartment association
  • the apartment association is creditworthy
  • the loan recipient has the competent decision of the general meeting regarding the performance of renovation works, borrowing and concluding a pledge agreement
  • the renovation works are scheduled in the apartment building’s management plan
  • an apartment building is considered to be a residential building with three or more apartments
  • at least 80% of apartment ownerships belong to individuals
  • in a residential building with up to 5 apartments, all apartment ownerships must belong to different and unrelated individuals
  • the apartment building is used as a residence

Important conditions

How to apply

In order to receive a loan from KredEx, there must be a decision or response from the banks not to grant a loan to your apartment association or the offer must contain unreasonable conditions. For example, it is considered unreasonable to charge an interest rate that is double the interest rate offered by banks on the market for an equivalent project, or where the required amount of self-financing exceeds 20%. You can also apply for a renovation loan from KredEx if you would like to reconstruct the entire residential building, but are not receiving a big enough loan from the bank. Once you have received the bank’s loan decision or negative decision, a loan application, along with additional documentation, should be submitted to KredEx. If you want to use the apartment building reconstruction support offered by KredEx in conjunction with a loan, you must first submit an application to KredEx for support, after which you must contact the bank for a loan. In the event that you receive a negative decision from the bank or an unreasonable offer, you may then submit a loan application to KredEx.

Please send any questions and the documents required in order to submit an application to the address [email protected].

Please Note! The maximum size of one letter is 10MB. Larger messages may not arrive. Larger attachments can be sent via a link or e-KredEx.

Renovation works financed by a loan

All co-ownership-related renovation works that ensure the structural stability of the apartment building, increase the energy efficiency of the residential building or improve the living conditions of the apartment building’s residents, including construction, maintenance and landscaping work performed for the preservation of a residential building, the land serving the residential building and the buildings serving the residential building located on that land, or for the improvement of their efficiency, safety and well-being, if they are performed together with the renovation of the residential building.

Apartment building renovation loan conditions
  • Interest starting at 2% + 6 month Euribor (if the Euribor is negative it is equated to 0).
  • Loan amount: the minimum amount is EUR 15,000, and the maximum is EUR 3 million per apartment association, including if it manages several apartment buildings.
  • Self-financing starting from 5%.
  • Term of up to 30 years.
  • Grace period as needed.
  • Service fees:
    • The contract fee is 1% of the loan amount; a minimum of EUR 150
    • in the event of increasing the loan amount, the fee for amending the contract shall be 1% of the amount to be increased; a minimum of EUR 30
    • in the event of the premature repayment of the loan the fee shall be 1% of the repaid amount; a minimum of EUR 30.
  • The loan recipient undertakes to coordinate with KredEx, any assumption of additional liabilities exceeding the limit fixed in the agreement, the making of investments, and the disposal of assets.
  • Upon concluding the contract, there is an obligation to take out insurance (beneficiary: Estonian Business and Innovation Agency) for the entire duration of the loan contact.
  • Security: the security is the apartment association's claims against its members for the payment of management costs.
Required documents in the case of an apartment building renovation loan
  • A loan decision from at least two banks
  • Loan application (application.docx)
  • The original minutes of the resolution of the general meeting on the borrowing and conclusion of a pledge contract and the registration form for the participating apartment association’s members
  • Financial statement for the previous financial year and a valid management plan
  • invoices for the past three months from larger utility service providers
  • Bank statement for the last 6 months (from all banks where the apartment association settles)
  • Extract from the land register regarding apartment owners (not older than 1 month before the general meeting was held)
  • Apartment building renovation project or building expertise analysis report, or renovation plan, or energy audit
  • Two price offers for the works to be performed
  • If necessary, KredEx may request additional documents and information


Good to know

Contact us

Kristo Hütt

Kristo Hütt

Client Manager

kristo.hutt [at] kredex.ee