Citadele bank and ALTUM team up to offer business microloans

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Latvia's Citadele Bank and state-owned development finance institution ALTUM have signed a contract that will allow small and medium-sized enterprises (SMEs) to receive ALTUM portfolio guarantees in the near future, it was announced January 27.

Currently, Citadele offers SMEs the opportunity to get a Microloan without a pledge. Now clients qualifying for the ALTUM portfolio guarantee will be able to receive a larger amount of funding at a lower interest rate with a decision on granting a loan made within minutes and the funding arriving within one day.

Inese Zīle, member of the Management Board of ALTUM said, ‘Portfolio guarantees are a modern business support tool the use of which is gradually increasing, and we see that entrepreneurs appreciate both better financing conditions and the speed of provision of funding... With Citadele Bank joining the circle of partners under our portfolio guarantee programme, we can say for sure that financing for SMEs is becoming more accessible as well as faster and easier to obtain."

"ALTUM portfolio guarantees will enable us to provide Latvian SMEs with a larger Microloan amount without increasing the application evaluation time," said Vladislavs Mironovs, member of the Management Board of Citadele Bank.

"Cooperation with ALTUM will also enable the bank to provide a Microloan to companies which
have not qualified for it before due to a lack of collateral," said Mironovs.

According to ALTUM's current definition, a Microloan is a small loan that can be easily obtained and issued to an enterprise that does not employ more than 10 employees, with the possibility to apply for a loan before the establishment of an enterprise. The maximum amount of the loan is EUR 14,300 for investments and up to EUR 7,200 for current assets. The loan has a fixed annual interest rate of 5% to 8%.

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