15.04.2020
WHAT DOCUMENTS ARE NEEDED TO TAKE AN INTEREST-FREE LOAN
The Bulgarian Development Bank announces the mechanism, conditions and procedure for lending to individuals under the Interest-Free Credit Guarantee Program to assist people deprived of the opportunity to work due to the COVID-19 pandemic.
The program is one of the crisis measures of the Bulgarian government in protection of self-employed and employed persons in a state of emergency. It will help the individuals affected by the economic impact of the pandemic, who must meet the following conditions:
Concerning the persons under an employment contract:
Have stopped paying their employer for paid work and are on unpaid leave as a result of the pandemic;
Be a party to the employment relationship in the last 6 months before taking unpaid leave;
Do not receive remuneration for other employment relationships;
Have at least five business days worked in March, if this is the month in which they are placed on unpaid leave.
About self-insured persons:
Have discontinued the activities of self-employed persons and / or suffered at least a 20% decline in their first quarter of 2020 compared to the first quarter of 2019 as a result of the pandemic;
Do not receive remuneration for other legal relationships.
Applicants must have paid contributions and be able to resume their activities (will return to the same job) upon termination of unpaid leave.
The maximum amount borrowed is BGN 4,500, drawn at one time or in three tranches of BGN 1,500 each. If a smaller amount of the loan is initially allowed, it can be annexed subsequently in order to reach the amount of BGN 4,500.
The loans are interest-free (the regular interest rate is 0%) and the borrowers do not owe fees, commissions and penalties. Applicants do not provide collateral as a condition of the loan.
The maximum repayment period is 5 years, with a minimum of 6 months and a maximum of 24 months grace period.
The loans are repaid after the end of the grace period in installments, the amount and number of which are determined between the commercial bank and the borrower. Commercial banks have the right to change the repayment schedule agreed with their clients, but within the maximum program deadlines. Every citizen is entitled to early repayment of his / her debt without having to pay a fee / commission.
You can apply for the program loan by December 31, 2020.
It is necessary for the persons to present to the BDB partner bank under the program:
Request for financing in an approved form (to be provided by the commercial bank);
Valid identity document - ID or passport;
A person's registration document, if self-insured;
Data on the employer and the concluded employment contract (NSSI report is also required for the presence of an employment relationship 6 months ago);
Declaration containing the following statements:
Declaration of discontinuation of self-insured persons and / or documents establishing over 20% decline in income of self-insured persons in the first quarter of 2020 compared to the first quarter of 2019;
Declaration that the person is on unpaid leave due to the pandemic, the starting date of unpaid leave must be after 08.03.2020;
Declaration by the applicant about the temporary (wholly or partially) suspended activity of his employer resulting from the pandemic;
Declaration that the person does not receive remuneration for his work under another legal relationship;
Declaration of the person's intention to return to the same job / resume the discontinued activity - for self-employed persons;
Declaration that the person (whether employed or self-employed) has paid social security contributions;
A statement that, in parallel with the loan application, the applicant does not take advantage of another measure provided by the state for individuals in connection with the pandemic.
BDB will announce the partner banks under the program after April 15, 2020.
