Saturday, 15 March 2025
In just a year since entering the secured loan market for entrepreneurs, Home Credit has achieved notable success, providing over CZK 200 million in loans to Czech businesses this year. By securing loans with clients’ residential properties, Home Credit is able to offer more competitive terms. The company reports that the highest demand is for refinancing existing loans, with the average loan size reaching CZK 4 million.
Home Credit’s approach is focused on empowering small and medium-sized enterprises (SMEs) with secured loans that feature some of the best interest rates available in the non-bank sector. “We offer not only competitive rates but also transparent terms. Entrepreneurs particularly value the option to repay after one year without penalties,” said Richard Kouba, Home Credit’s product manager.
Growing interest in these secured loans reflects Home Credit’s expanding role in the market. In addition to refinancing, many business owners are now seeking financing for new development initiatives. “Recently, we’ve seen heightened interest in funding development projects. To meet this demand, we’re looking at customized financing options for developers and builders, with loan amounts reaching into the tens of millions of crowns,” Kouba added. Home Credit aims to become a go-to financing partner for developers, especially those who may find traditional bank financing slow or inaccessible.
“We are committed to offering transparent, fair, and flexible loan products that empower entrepreneurs to grow their projects,” stated Luděk Jírů, CEO of Home Credit. “Through this approach, we hope to make a meaningful impact on the sustainable growth of SMEs in the Czech Republic while promoting responsible practices in the non-bank loan market.”
Home Credit’s commitment to responsible lending includes thorough assessments of clients and their properties. The company evaluates applicants’ financial health, ensuring they are debt-free and not under bankruptcy or insolvency proceedings. As for collateral, Home Credit accepts residential properties used as primary or secondary homes, including apartments, family houses, holiday homes, and studios, with loan amounts up to 70% of the property’s current market value.
Designed for both legal entities and individual entrepreneurs, Home Credit’s secured business loans are typically capped at CZK 30 million, with maximum amounts extending to CZK 100 million. Loan terms can be stretched over a 20-year period, provided the borrower has been in business for at least six months and has a stable income stream to support repayment.
As Home Credit continues its expansion in the entrepreneurial finance sector, its focus remains on fostering sustainable growth for SMEs and upholding ethical lending standards that build trust and stability in the Czech non-bank financial landscape.
