Purpose of the loan:

  • The loan is intended to finance the investment needs of villages/towns/HTUs. These include the acquisition of tangible or intangible fixed assets (real estate, municipal machinery and equipment), their modernisation, reconstruction, maintenance, purchase of IT equipment and software, financing of energy-saving projects, renovation of public lighting and heating equipment, etc.

Use of the loan:

  • in the form of one-time or gradual use of the loan amount, or with the possibility of refunding already paid invoices six months prior to the signature of the Term Loan Agreement.

Maturity period and repayment of the loan:

the maximum maturity period of an investment loan is twenty years, depending on the project and the budget of a village/town/HTU. The investment loan is repaid:

  • in regular monthly or quarterly instalments of the principal according to the agreed repayment schedule, or
  • in regular monthly or quarterly annuity instalments.


  • a preferential loan fee;
  • the consideration for the reservation of the funds not granted does not apply;
  • other fees are set according to the Price List of VÚB, a.s.

Loan collateral:

  • Minimum collateral: assessed on a case-by-case basis

Terms and conditions for granting a loan:

  • demonstrating the ability to repay the loan, including interest and fees, within the required maturity period and under pre-agreed conditions;
  • a written confirmation of compliance with all conditions for receiving recoverable financial resources in accordance with Act No. 583/2004 Coll., which is issued and signed by the comptroller general (i.e. the chief financial controller) of a village/town/HTU;
  • a special-purpose nature of the loan – i.e. the loan is intended for a special purpose related to the financing of the investment needs of a village/town/HTU;
  • loan collateral, including interest and fees;
  • other conditions depending on the nature of the business, knowledge and creditworthiness of the applicant (e.g. making a notarial record as a writ of execution for a property).

Required documents

  • a written Loan Application, including additional table annexes, depending on the amount and type of the loan an entity applies for and the type of the business entity/applicant;
  • a certificate of mayor appointment;
  • a certificate of registration and assignment of an identification (registration) number;
  • a resolution and signed minutes concerning the approval of the loan application, the consent to the loan collateral and to the issuance of a notarial record and/or to the signing of a blank bill;
  • a detailed budget and audited financial statements for the last two financial years and current financial statements for the last six months;
  • an approved budget management plan of a village/town/HTU for the relevant year,
  • documents necessary for the loan collateral.
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