Environmental loan

Last updated on 03.01.2020 Environmental loan


Since 2016, the EIC has been granting loans to ensure the self-financing of water projects funded from the Cohesion Fund (ECF) during the period 2014-2020.

The loan amount is up to 100% of the self-financing of the Cohesion Fund’s water project. The loan can also be used for funding the non-eligible costs mentioned in the project application, which are still necessary for the implementation of the project.

The EIC only grants the loan against a security – for an enterprise this may be the property entered in the land register, over which a mortgage can be established – provided that the value of the property covers all claims with a ratio of 100/70. The security of an enterprise with no property for establishing the mortgage can be a commercial pledge over movable property. In the case of local governments, the security is their budget.

The loan term may be up to a maximum of 20 years, and there is a possibility for a grace period during the implementation of the project and, if necessary, for up to 2 years after the completion of project.

The loan can be applied for in the Estonian language. Additional information is available here, in Estonian, on the EIC’s homepage.