The maximum amount you may borrow is a subject of your current financial state and property which could secure the loan or on the type of loan you are up to or eligible to. There are various types of business loans in Malta. A range of projects could be financed:
* Start-up financing – if a company is carrying business for less than 24 mounts and employs less than 10 people, the turnover and total assets of less than €2 million it qualifies for a Start-up financing loan. There are few options to choose from to finance you business: Graduate Loan, Start-Up Loan (€5,000-100,000), Start-up overdraft to finance daily operations of the business.
* Graduate needs financing – to qualify for this loan which could be used to finance any sort of business one mus be 18 years of age, be a resident on Malta, present proof obtaining certificate of tertiary education within 4 to 5 years (it may differ in certain banks), have constant income (employed or self employed). Amount to borrow €600-30,000; variable interest rate – 4,5%.
* Agricultural Business financing – a secured loan which could be used on land and related assets, re-payed within 7 years, interest rate is tax deductible. In some cases no VAT is added to the lease payments. Independent valuations will be required.
* Real estate Development financing – company could borrow more that €3 million and more, the amount depends on an architect valuation. Loan could finance purchase of land, development of residential, commercial, mixed use. Terms vary in between 3 to 10 years, or up to selling/renting the development or its units.
* Trading Business financing
* Green loan – for energy saving products and services of the personal use. Maximum repayment term -7 years, amount €600-30,000, variable interest rate – 4,85%.
Bank typically finances 70% of capital investment. All agreements would be based on the outcome of arrangements on individual meetings with bank consultants. For financing a business or a project a business plan would be required. Banks offer consultations and advice on business plan development.
Business loan provides in Malta: