CKB green loans

  • Loan purpose: investment in tangible and intangible assets aimed at improving energy efficiency and use of renewable energy sources
  • Repayment:
    • monthly /equal annuities or instalments/
    • quarterly /equal annuities or instalments/

Product description

The main purpose of these loans is to enhance energy efficiency through the reduction in electricity consumption and rationalization in spending natural resources that may be used in the process of electricity production.

The loan funds may be used for making investments in the replacement of existing electric devices with those that are more energy efficient, improvement of thermal insulation, installation of solar heating systems, modern lighting systems, replacement of existing air-conditioning equipment with energy efficient one, etc.

The loans are approved on the basis of technical assessment and invoices attached by potential borrower. The approved amount is disbursed to the client who has an obligation to repay it within 96 months, with a grace period up to 12 months (subject to agreement between the client and the Bank).

The product is intended for companies operating on the territory of Montenegro. To qualify for application, a company must present technical assessment proving electricity savings of minimum 20%, while the planned use of renewable energy sources is, by itself, a self-sufficient condition for application, supported by adequate technical documentation.

The Bank introduced this product in 2007 and it is still exclusive on the Montenegrin banking market.

Since the main purpose of the product is reduction of electricity consumption, it may lead to decreasing energy expenses, which is of particular importance to companies operating in the field of tourism, where these expenses are high. On the other hand, companies are offered an opportunity to ensure the necessary investments, basically aimed at reducing electricity costs, under favourable conditions.

Product price

Product price, i.e. interest rate is determined on the basis of economic and financial analysis of the company, credit history, turnover on the account with CKB, collateral quality and value, etc.

How to apply for a loan?

To apply for a loan of this kind with CKB, it is necessary to submit documentation specified in the Loan Instructions and draw up appropriate application. The application should include basic information on the company operations, future plans, relations with larger buyers and suppliers, collateral that the company is willing to offer as security for the requested loan, etc. It is important for the application to bear the signature of the authorized person and corporate seal. It should also include technical description of the investment evidencing 20% savings in energy consumption or presenting the planned renewable energy project. For more complex projects, programme consulting services of MACS company are provided.

The application, along with the necessary documentation, should be submitted at the Bank reception desk. After that, the application is going to the Client Adviser, who prepares proposal for the Credit Committee that brings decisions on received applications. Upon the completion of the decision-making process, the Client Adviser will inform the client on whether the application has been approved and upon which terms and conditions.