Loan Purposes

Merkur Development Loans Ltd. offers loans to small and medium-sized businesses (SME) and cooperatives in developing countries that use sustainable production methods.

Examples of loan purposes:

  • Production and storage buildings.
  • Production plant equipment and machinery.
  • Operating equipment, e.g. trucks.
  • Working capital in order to finance the final stages of certification, including the purchase of additional equipment, fees, etc.
  • Financing tied-up funds in inventory and outstanding claims.
  • Purposes connected with renewable energy.

Credit terms:

  • The size of loans will typically range between EUR 50,000 and EUR 150,000. The maximum for individual loans is at EUR 200,000
  • Interest rate: Annual interest rate: 8-12 % for loans in EUR, USD or DKK (interest rate as of January 20, 2010). Interest rates are determined on an individual basis according to an overall assessment of a company's equity, operating profit, historical performance, collateral and specific elements of risk in connection with the proposed investment/business activity.
  • Loan Period: Three to five years. For loans involving investments in land and buildings, the loan period may be prolonged to a maximum length of ten years.
  • Requirements may be made concerning collateral and asset insurance.
  • Up-front fee 2% of loan sum.

As a general rule the interest rate is fixed, but local financing practices and competitive parameters are also taken into consideration.

Trade Credits

Merkur Cooperative Bank offers trade credits for, and pre-financing of, production costs related to exports of organic, biodynamic, fair trade and FSC-licensed products to Scandinavian countries.


Merkur Development Loans Ltd. - Vesterbrogade 40 - DK-1620 Copenhagen V •