What are investment loans

An investment loan is a loan that companies use to finance tangible investments such as machinery, vehicles, equipment, digitization or expansion. The purpose is for the investment to create increased income, improved efficiency or strengthened competitiveness over time. In other words, investment loans are about growth -- not about covering ongoing operating costs.

In practice, an investment loan can be structured as a annuity loan. This means that the loan is paid off with equal term amounts each month throughout the term. Each payment consists of both interest and installments, allowing predictable cost and easier budgeting.

The difference is not in the repayment model itself, but in the purpose: investment loans describe what the loan is used for, while annuity loans describe how it is repaid. You can read more about our solutions for investment loan and how it works in detail.