Individual Guarantees for Loans
Individual guarantees for loans, provided by ILTE, offer solutions to unattractive or insufficient conditions and facilitate the access to the funding sources.
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This is translated information. In case of any discrepancies, the original Lithuanian version shall prevail. |
Who is eligible?
Business start-ups, small and medium-sized enterprises, large companies.
Applicable loans
Guarantees are provided for loans intended for:
- tangible investments – purchase, construction, repairs or reconstruction of fixed assets;
- intangible investments – technology takeover acquiring patents, licenses or other technical know-how not subject to patenting;
- working capital;
- refinancing of investments from enterprise funds (no earlier than within last 6 months before the date of receipt and registration of the guarantee application). In such case the guarantee application must be accompanied by documents supporting expenses and payment.
Guarantee amount
The maximum amount of the guarantee may not exceed EUR 5 000 000, in the case the subjects acitvity is road freight transport for hire and reward - guarantee may not exceed - EUR 750 000 EUR.
Minimum proportion of own funds – 20 percent, intensity of guarantee 80 percent depending on the age of the company.
The maximum loan duration is 5 years for investment loans and 3 years for working capital.
Guarantee fee
Where to apply
To apply for the instrument, firts contact our financing partner and arrange a loan that is eligible for an ILTE guarantee.
Our list of financing partners
You do not need to contact ILTE for the guarantee – this is done by our financing partner.
How does it work?
In order to use this financial instrument, subject is required to apply directly to the financial institution and agree on the amount of funding. The financial institution will assess the project, ability to repay loan and calculate the amount of guarantee needed. Subsequently, the financial institution will submit a request for a guarantee on a loan as well as other related documents to ILTE.
The financial intermediary has to pass on the advantage received through the State guarantees to the beneficiaries, by granting a loan with lower interest rate or lower collateral requirements for the borrower. The rate of interest on a loan with a guarantee must be lower or collateral requirements must be on more favourable terms than in case of a loan without a guarantee. The difference in interest rates or more favourable collateral requirements for the borrower must be specified in the documents submitted by the guarantee recipient to ILTE along with the application for a guarantee and in the loan agreement.
In exchange for the guarantee, the borrower should pay a one-off guarantee fee, payable before the issue of the guarantee.
The guarantee fee shall be determined based on the guarantee amount and the duration of the guarantee, i.e. a fixed base will be applied for the first year (months 1 to 12), and an additional annual premium will be applied for each following year.
The fixed base will depend on the age of the borrower: 1 per cent for companies aged less than 3 years*; 1 per cent for companies aged more than 3 years (in the case of a working capital loan) , 1.5 per cent for companies aged more than 3 years (in the case of an investment loan) .
* – the age of the company is calculated from the date of receiving the guarantee application.
The annual premium will amount to 0.2 per cent (in the case of an investment loan) and 0.4 per cent (in the case of a working capital loan) for each additional year (i.e. 0.2% / 0.4% for months 13 to 24, for months 25 to 36, etc.).
Pricing table:
| Segment | Fixed base | Annual Premium |
| All SME companies aged less than 3 years | 1% |
working capital 0.4% investment 0,2% |
| Working capital, 3 years or more | 1% | |
| Investment, 3 years or more | 1,50% |
Examples of guarantee pricing
An SME aged more than 3 years is financing investments with a bank loan maturing in 4 years. It will repay the guaranteed portion of the loan within 3 years.
Guarantee fee = Fixed base + (n * Annual premium)
Guarantee fee = 1.5% + (2 * 0.2%) = 1.9%
An SME aged more than 3 years is borrowing to finance its working capital. The bank loan matures in 2 years, the guaranteed portion of the loan will be repaid within 18 months.
Guarantee fee = Fixed base + (n * Annual premium)
Guarantee fee = 1% + (1 * 0.4%) = 1.4%
Fee calculator can be used to calculate the estimated guarantee fee on a case-by-case basis.
List of documents to be submitted is presented in the original Lithuanian version.