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 Euro 40,000 and Euro 70,000. The maximum for individual loans is at Euro 200,000
  • Interest rate: Annual interest rate: 8-16 % 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.
  • Upon establishing a loan, a loan establishment fee of 2% of the borrowed amount is paid.

Loans may be granted in other currencies, following more detailed assessment.  In this case, the borrower pays an extra charge that matches the local inflation rate.  As a general rule the interest rate is variable, 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 •