The Local Democracy Agency from Osijek and the Council of Europe Development Bank have commenced the implementation of the Microcredits for Small Entrepreneurship project. The main goal of the project is to stimulate employment in the Osijek-Baranja County, as well as to assist small entrepreneurs in implementing their business ideas.
Microcredits are granted to craftsmen, family farms, and small and medium-sized enterprises, and the novelty compared to existing loans is that complete beginners can also apply for them, those who have a good and innovative business idea and nothing else. The loans are limited to a maximum amount of 200,000 kuna, are granted for six years, and have an attractive interest rate of 4.5 percent per annum. The funds are used for the acquisition of fixed assets, with a one-year grace period.
The loan approval process compared to commercial loans is somewhat simplified, and the actual realization is carried out through the network of branches of Privredna banka Zagreb. So far, loans have been approved for several entrepreneurs, for example, for the construction of a greenhouse for hydroponic vegetable cultivation, the arrangement and adaptation of a restaurant, the procurement of equipment and inventory for the production of Slavonian kulen, the acquisition of about ten dairy cows, the arrangement of guest rooms for rural tourism in the Danube region, the procurement of construction scaffolding, the completion of the construction of a modular production facility, the purchase of an orchard, and the completion of a cheese factory. (K.K.)
