Loan application
On-lending through a bank
Submit the application early on
The loan application always has to be submitted before the start of a project (for example before the first binding contract/order or the conclusion of a purchase agreement) because debt restructuring and ex-post financing are not possible after such time.
So, be sure to talk to your bank about the KfW loan as early as possible.
Your bank can also provide you with the application form.
Review of the application by your bank
The financing for your project will be channelled solely through your regular bank. In some cases a KfW loan can cover only part of your financing needs.
Then your bank will add a loan of its own to the financing. At any rate you should contribute an adequate amount of your own equity.
Standard banking collateral has to be provided for the loan, also for the portion from KfW Mittelstandsbank.
You will negotiate the type and amount of collateral with your bank.
After carrying out a valuation and credit assessment your bank
will make a decision on the loan. Generally it will assume full
liability against
KfW Mittelstandsbank for the loan provided by KfW Mittelstandsbank.
If the result of the valuation and credit assessment is positive
your bank will indicate its approval on the loan application and
submit it t
KfW Mittelstandsbank.
Review of the application by KfW Mittelstandsbank
KfW Mittelstandsbank checks whether all the criteria for financing are fulfilled. If your bank assumes full liability, KfW Mittelstandsbank can offer a loan commitment within a few working days after conducting only a formal check.
If your bank applies to KfW Mittelstandsbank for partial exemption from liability, KfW Mittelstandsbank will also need to check your credit documents.
Afterwards KfW Mittelstandsbank usually requires a few weeks to make its commitment.
The loan application
The loan agreement is signed by you and your bank. Your bank pays out the KfW loan to you and transfers your repayment instalments to KfW Mittelstandsbank. Apart from the interest you will not incur any further costs such as handling fees.
