Women in Business Support Programme-start up

 1. Programme Objective 

The aim of the Programme is to provide special crediting conditions to further encourage women to start their own business. This interest-free credit line will support those women who have the potential to start with the realization of their business ideas based on their knowledge and experience. This will allow the realization of the objectives defined in the Strategy for Development of Women Entrepreneurship 2015-2020.

2.       Loan Purpose 

Loans are intended for investments in fixed assets - tangible assets (buildings, equipment and appliances, livestock, long-term living plants, inventory...), intangible assets (product or service development, patents, licenses, concessions, copyrights, franchises...) and working capital. 

Final utilization period shall be established on the case-by-case basis for each individual loan arrangement finance up to 75,00 % of the total investment value. 

The applicants for the loan can provide their own share in the amount of 25,00 % of the total investment value within one year since the day of signing the loan agreement. 

Loan amount dedicated to investing in working capital may be up to 30,00 % of the total loan amount. 

Financial support shall not be approved for the following purposes:

·         Parts of investments intended for meeting personal needs,

  • Catering facilities exclusively serving drinks,

·         Newspaper and other occasional edition publishing activities, activity of producing and airing radio and television programs, activities of newspaper agencies and services of marketing and public relations agencies,

·         Acquisition of shares in other companies, stocks and other securities;

  • Gas and petrol stations,
  • Construction of residential and business units for sale,
  • Production and sale of military equipment or services;

·         Motor vehicle sale points;

·         Completed investments intended for loan obligations refinancing;

  • Banking and insurance; Banking and insurance;
  • Foreign exchange and securities trading; Foreign exchange and/or securities trading;
  • Participation in projects violating internationally recognized employee rights, including safety at work, rules and procedures in Montenegro;
  • Any of the activities perceived as illicit or environmental and/or human health threat: gambling, tobacco, alcoholic beverages (except wine and fruit brandies);
  • Immoral and illegal activities. 

3.       Loan Beneficiaries 

The loans are intended for women who wish to start their own business, therefore, support and development of start-up companies. The women must be the 100% or major owner and Executive Officers of the companies. 

It is possible to make a preliminary decision on lending under certain conditions, including the registration of company. 

In case of approval of the loan by IDF MN JSC, beneficiaries must register their activity in one of the forms of organization established by the Law on Business Entities, or as defined by the rules of their corresponding area of activity (artisans, agricultural producers, PHI etc.). 

The applicant may not have more than 20.00% of ownership in another legal entity (economic society). 

Right to a loan is not a guaranteed right and IDF MN JSC shall enact a decision on each Loan Application.

4.       Lending Method 

IDF MN JSC implements this Programme through direct lending to the loan beneficiaries.

Loan Applications that are not supported with mandatory defined documents shall not be taken into consideration.

5.       Loan Conditions 

Loans approved under this credit line shall be provided from the Company’s own credit potential.

Lending conditions:

  • Maximum amount up to € 50.000,00 for entrepreneurs up to € 30.000,00);
  • Interest 0%;
  • Maximum term of 12 years (including grace period);
  • Grace period up to 4 years. 

In case of a direct loan arrangement that is fully or partially supported by a bank guarantee, cash collateral or State guarantee, such loan arrangement or its proportional part shall not be considered as exposure of the end beneficiary.


6.       Fees 

Fee amount

·         0,50% on the approved amount for subjects implementing projects in northern municipalities of Montenegro and in municipalities below the average value of the development index in Montenegro;

  • 1,00% on the amount approved for projects implemented in other municipalities.

7.       Utilization of Loan 

Loan utilization period is up to 24 dependent on the real needs and the dynamics of investing.

Loan beneficiaries shall be obliged to a dedicated usage of loan funds in accordance with this programme and agreement signed between IDF MN JSC and loan beneficiary.

IDF MN JSC shall perform control of the dedicated usage of loan funds.

IDF MN JSC shall execute approved direct loans whose purpose is investing in fixed assets (and inventory), by transferring funds to:

  • The supplier’s account or service/works provider or
  • Loan beneficiary account, in single or in tranches - in phases. 

Transfer of funds directly to the Loan Beneficiary’s account in tranches – in phases, means that, as a general rule, the subsequent transfer of funds will not take place until the Beneficiary justifies dedicated usage of prior realized funds under the approved loan (fund per already transferred tranches).

Exceptionally, in case of refunds of the paid investments, the transfer of funds to the loan beneficiary's account may be performed as a single payment, in accordance with the present rulebook of IDF MN JSC.

8.       Means of Security 

As means of security, IDF MN JSC shall accept bills of exchange, mortgage over immovable property (the estimated value of the immovable property must be at least equal to the amount of the request loan), bank guarantees, local self-governments’ guarantees, guarantees of the Government of Montenegro, guarantees of credit rating legal entities, stocks of receivables , administrative bans on income, at least one solvent guarantor (depending on the amount of the loan and the guarantor's income),and other generally accepted instruments of security in the banking sector, in accordance with the Acts of IDF MNE JSC and decisions passed by competent bodies of IDF MN JSC. 

All costs with regard to providing instruments of security as well as of the execution of insurance-related tasks, deletion and retrieval of realized instruments shall be carried by the loan beneficiary.

9.       Required Documents 

Documents required for realization of the project through direct loan arrangement:

Required documentation for applicants who have registered activity: 

  • Loan Application;
  • Investment programme in accordance with the methodology of IDF MN JSC, or an investment programme of an acceptable content;
  • Authorization for retrieving data from the Regulatory Loan Registry of the Central Bank (RKR), including founders and related parties;

·         Tax Administration certificate on settled taxes and contributions – not older than 30 days;

·         Official form for reporting on settlement of monthly taxes and social contributions for employees, verified by the Tax Directorate as evidence of the number of employees;

  • Proposal of the collateral;

·         Pro-forma invoices (photocopy or original) on procurement of equipment and inventory, preliminary invoices for construction works, preliminary agreements on purchase of real estate (IDF MN JSC shall not accept offers/preliminary agreements issued by natural persons, exception being purchase of real estate, offers/preliminary agreements issued by related parties or internal invoices). The documents in subject may not be dated more than three months from the date of the submission of the Loan Application;

  • Excerpt from the Central Registry of Business Entities - not older than 30 days;
  • Certificate on VAT registration, if the end user is subject to the VAT;
  • Valid Statute of the Company;
  • Valid form of certified signatures of persons authorised for representation (OP) and valid specimen signature card;
  • Statement on related parties[1]; 

For the construction / upgrade / reconstruction of a business facility:

  • Property list of the real estate where the investment in question is not older than 30 days;
  • Building permit (equivalent to the law) which refers to applicant. 

For the purchase of office space:

  • Real estate list where the real estate that is the subject of the sale is not older than 30 days;
  • Pre-contract / contract for the sale of real estate (certified by a notary);. 

Required documentation for applicants who do not have a registered activity. 

For making a preliminary decision:

        Loan application;

        Investment program in accordance with the methodology of IDF MNE JSC;

        Confirmation of the Employment Agency of Montenegro that the applicant is on the register of unemployed persons of the institution;

        Approval for access to the data of the Regulatory Credit Registry of the Central Bank of Montenegro (RKR);

        Copy of ID card of applicant;

        Proposal of security instruments;

        Profit (copy or original) for the purchase of equipment and small inventory, calculations for the execution of construction works, pre-conditions for the purchase of real estate (IRF CG AD will not accept bids / pre-contracts issued by natural persons, except for the sale of real estate, offers / as well as internal invoices). The subject documentation cannot be older than 3 months from the date of submission of the loan application;

        Statement on the home community. 

For the construction / upgrade / reconstruction of a business facility:

  • Property list of the real estate where the investment in question is not older than 30 days;
  • Building permit (equivalent to the law) which refers to applicant;
  • Priced bill of quantities and offers for execution of works. 

For the purchase of office space:

  • Real estate list where the real estate that is the subject of the sale is not older than 30 days;
  • Pre-contract / contract for the sale of real estate (certified by a notary);.

For making the final decision:

·         The Decision on the end-user registration in the Central Registry of Business Entities, or in the other registry of the competent authority or Excerpt from the Central Registry of Business Entities - not older than 30 days;

        A VAT registration decision if the end user is a VAT payer;

        Valid company statute;

        Approval for access to the Central Bank of Montenegro Regulatory Credit Registry (CRR) data;

        Valid form of the certified signatures of the person authorized to represent (OP) and the valid card of the deposited signatures;

        Statement on affiliated persons newly established legal entity;

        Pro-forma invoices refer to a newly established legal entity. 

As a rule, all documentation is submitted in Montenegrin language. 

Executive office of the IDF MN JSC retains the right to request additional documents.

10.   Other Provisions 

Additional rules applicable to this Loan Programme, which are not mentioned in this document, are defined in special acts passed by competent bodies of IDF MN JSC.

11.   Credit Line Validity 

This Credit Line shall be valid until 31 December 2019, or until its change/cancellation. 

President of the Board of Directors of IDF MN JSC


      PhD Zoran Vukčević

[1] Article 3 item 8 of the Law on Banks (“Official Gazette of Montenegro”, 17/08 of 11 March 2008, 44/10 of 30 July 2010, 40/11 of 8 August 2011)