KfW Investment Loans for Municipalities
Who is eligible to receive a KfW Investment Loan for Municipalities?
- municipal authorities
- legally dependent companies owned and operated by municipal authorities
- municipal special-purpose associations
How are the funds provided?
In the form of long-term direct loans (not through an onlending bank)
What may be financed?
Investments and investment promotion measures
- in municipal and social infrastructure
- in housing projects
What proportion of the investment may be financed?
Generally up to 50% of the financeable investment costs per
project
For loan amounts below EUR 2 million up to 100% of the investment
costs can be financed.
no maximum amount
Term
maximum of 30 years with no more than 5 repayment-free start-up
years
when the loan term is up to 20 years, not more than 3
repayment-free start-up years
Interest rate
The interest rate is based on the capital market and updated daily. Interest rates are published from approx. 10.00 a.m. every banking day.
Collateral
For loans granted under this programme the formal conditions customary to municipal loans must be met.
Combination with other financing programmes
- not possible with KfW Investment Loans for Municipalities - flexible
- possible with other public promotional funds
Note: For combinations with loans from Landesförderinstitute (special credit institutions of the federal states) funded by KfW, the maximum admissible financing proportion specified above also applies.
Further Information
