The call with the code GINOP Plusz-1.4.3-24 opened on 30 April and has remained open ever since. Under it, a 0% interest subsidised loan can be applied for – including for purchases from NIKETRANS Targonca Kft. – of up to HUF 100,000,000!

Eligible costs and their limits:

  • New equipment resulting in technological modernisation (at least 50% of the project) and hardware (maximum 30% of the project) (only items on the customs tariff (VTSZ) list belonging to the call).
  • Intangible assets (maximum 10% of the project) (only items on the TESZOR product classification list belonging to the call).
  • Training (maximum 5% of the project).
  • Purchase of max. 1 new electric vehicle (together with renewable energy generation equipment, maximum 50% of the project).
  • Purchase of renewable energy generation systems (on their own maximum 30% of the project; together with an electric vehicle, no more than 50% of the project)

Our detailed overview of the call: https://palyazatnet.hu/palyazatok/ginopplusz-14324-kkv-technologia-plusz-hitelprogram?id=a0TJy00000RsNWA

How large a loan can be applied for?

Under the call, loans of between HUF 10 million and HUF 100 million can be applied for. The exact amount depends on the operating profit of the applicant's last closed business year and may not exceed fifteen times that figure.

What does a 0% loan mean?

The interest rate on the loan available under the call is 0%, and a further benefit is that the following costs are not charged:

  • assessment fee,
  • contract and contract amendment fee,
  • disbursement fee,
  • handling charge,
  • commitment fee,
  • early repayment fee,
  • contract amendment fee.

For what term can the subsidised loan be taken out?

The term is determined by the depreciation, under the Corporate Tax Act (Tao. törvény), of the new tangible asset to be purchased with the loan, as follows:

  • for assets subject to a 50% depreciation rate, up to 24 months,
  • for assets subject to a 33% depreciation rate, up to 36 months,
  • for assets subject to a 25% depreciation rate, up to 48 months,
  • for assets subject to a 20% depreciation rate, up to 60 months,
  • for assets subject to a 14.5% depreciation rate, up to 82 months.

If the project includes an investment of at least 10% related to renewable energy, the term is up to 120 months from signing the contract, provided that the property affected by the works is also included in the collateral.

The maximum term must be determined using the term, in months, belonging to the asset with the longest maximum depreciation period.

How much own contribution is required?

The applicant must have an own contribution equal to the total project cost less the loan requested, but at least 10–25%, depending on the type of eligible cost.

What collateral must the applicant provide?

The subject of the investment must be included in the collateral. Under the loan programme, the required collateral coverage is 50%.

When buying a new machine/equipment/vehicle, the purchased asset serves as collateral, while for projects aimed at technology using renewable energy sources, the property affected by the works must be included as collateral.

For other loan purposes, the following additional forms of security are accepted:

  • mortgage on real estate;
  • chattel mortgage (on machinery, equipment, vehicles);
  • cash deposit pledged on a payment account receivable;
  • absolute (direct) surety from a natural or legal person;
  • guarantee provided by a credit institution.

How is repayment scheduled?

After the grace period ends, repayment is made monthly, in equal capital instalments. Payments are due on the 15th day of the month in question. The first capital repayment is due on the 15th day of the month following the calendar month in which the grace period ended. If the 15th day of the month is not a working day, payment is due on the next working day.

The availability period is a minimum of 6 months and a maximum of 18 months from the signing of the loan agreement (which may be extended by 6 months in justified cases for a renewable energy project element), and the grace period is a maximum of 6 months from the end of the availability period.

IMPORTANT: the terms stated above include any grace and/or availability periods!

When can applications be submitted?

Since 30 April, applications can be submitted by completing the loan application form and attaching the mandatory annexes, to an appropriately licensed intermediary (MFB Pont Plusz) under contract with MFB Zrt.

Where can the project be located?

The project may be carried out at the applicant's registered office, business premises or branch in Hungary outside Budapest. Only a single implementation site may be specified, where the project will be carried out.

The implementation site must already appear in the applicant's company register extract when the loan application is submitted, and it must be demonstrated during the term that genuine economic activity takes place there.

So is this a grant application or a loan application?

This scheme is an interest-subsidised loan funded from European Union sources. Accordingly, unlike standard loans available on market terms, the investment in the application must also comply with all the state aid rules that would apply to a classic EU call for proposals. Therefore, the loan available under the call qualifies as repayable EU support, and hence as a grant application, albeit with a slightly different procedure from usual. Compared with conventional loans, more and considerably more complex documentation must also be submitted as part of the loan application.