Interest Free Business Loans for Micro Enterprises for one year. Know more about the scheme put forward by Microfinance Ireland

Microfinance Ireland provides business loans to micro enterprises who have been struck by the Covid 19 pandemic. Micro enterprises which meets the eligibility criteria will get Covid 19 loans worth €5000 to €25,000.

Any business which has less than 10 full time employees, less than €2m annual turnover and a balance sheet with Net worth/ Capital Account/ Equity that doesn’t exceed €2m are considered a micro enterprise. Existing customers of Microfinance Ireland can apply upto €25,000 under Covid 19 loans but they should meet the criteria too.

The criteria for eligibility to Covid 19 loans are:

  • The business should be a micro enterprise
  • The business is not eligible to get loans from other banks or financial institutions.
  • The business should have faced a negative impact of Covid 19 which has a minimum 15% turnover or profit.

The applicants need to prove that they are unable to get loans from other institutions but a bank decline letter is not necessary.


The Covid 19 loans have certain features which makes it more acceptable among micro enterprises.

  • Business loans worth €5000 to €25000 are provided.
  • In the 36 month loan period, six months are interest free and repayment free moratorium in which the loan should be repaid during the remaining 30 months.
  • No fees or hidden costs.
  • Loan terms upto maximum of three years.
  • Government rebate for the interest paid on the loan 7-12 months.
  • Fixed payments and no penalty for early repayment.

The 6 months Government rebate will be refunded to your bank account directly on 13th month of loan. The rebate will be initiated only if the interest for the 6 months are paid promptly.

There are two interst rates applicable to MFI Covid 19 loans. A discounted rate of 4.5% APR can be availed if businesses apply through their local enterprise office. If they apply directly to MFI, they can get a rate of 5.5% APR.

Gambling, Tobacco and any sectors with illegal activities cannot get loans through MFI.


Register your micro enterprise at or contact directly to the Local Enterprise office.

A Covid 19 Application form, Covid 19 business plan, cash flow forecast, Bank statement of 6 months and Central Credit Register Report are the needed documents which should be submitted.

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