Green together

If your project has an ecological aspect, MCB can assist you in breathing new life into our planet. We have teamed up with the Agence Francaise de Developpement to offer an exceptional Green loan designed for those who believe in sustainable development. Your contribution to the preservation of the planet will be rewarded with a refund of 12% of the "green" amount invested.

What is the Green loans project?

Agence Française de Développement "soft" lending, via five banks, Euros 40 million to individuals and corporates engaging in green projects.

Who is eligible for the loans?

MCB clients looking to use a loan of more than MUR 1 million for investment in environmental friendly projects.

What are the conditions of the loans?

Once the borrower has been able to prove that the amount of the loan has been spent on environment friendly equipment / measure, the borrower will be granted a cash amount equivalent to 12% of the loan
  • For refunds, the borrower will benefit from a grace period of up to 3 years
  • The project span (maturity of the loan) is for a minimum of 4 years
  • Interest rate will be mainly dependent on the risk profile of the investment and/or the borrower
  • Must be able to evaluate the expected impact on the environment – performance indicators need to be agreed with the bank
  • Commissions and fees charged on the loans will be set according to standard business practice of the bank

Which types of projects are eligible?

In general, projects which are beneficial to the environment:
  • Renewable energy (e.g., hydroelectricity, wind power, solar water heaters, sea energy, geothermal...)
  • Energy efficiency (e.g., rehabilitation of boilers/steam distribution systems/power distribution systems, installation of new chillers, new production systems/buildings using the best available technologies for environmental protection, etc...)
  • Environmental performance (e.g., waste management projects, wastewater treatment, air pollution control, treatment of contamination, cost of an eco audit, etc...)
  • Investment expenses under loans can comprise, besides equipment and hardware costs, the costs for engineering studies, installation services and works, as well as commissioning costs.

How is MCB's offer different from that of the other banks?

In general, the terms and conditions as well as the procedures applicable will be the same across the five banks, except for the chargeable interest rate, which will be determined by the bank. Our quality of service and celerity are also key differentiating factors.
A panel of resource persons has been contacted by the MCB to assess the "green" nature of projects submitted under this special credit line. Their opinions will help us take better decisions but MCB will retain the final decision and responsibility.

What is the limit in terms of the amount that a client can borrow?

Each applicant can borrow up to a maximum of € 7 million.

What is the procedure for applying for the loan?

  • Client submits a formal application to the bank by filling in the investment proposal form as well as his business plan.
  • MCB evaluates the project by verifying the eligibility criteria.
  • MCB evaluates project economically.
  • MCB submits drawing right request letter and eligibility assessment form to AFD.
  • AFD examines the application and grants the bank a drawing right.
  • MCB disburses money to client.
  • Client repays in installments.
  • 12% as 'cash back' on evidence of payments being effected.

What are the documents that have to be submitted when applying for the loan?

  • Investment proposal form – can be obtained from your account executive
  • Summary Environmental Appraisal Form

This loan is eligible only for projects in the field of renewable energy, energy efficiency and environmental performance.
  • A grant equivalent to 12% of the loan will be offered to the borrower.
  • A grace period of a maximum of 3 years possible, applicable for interest repayment only.

Will a project be eligible if only part of it relates to the environment?

Only part of the project relating to the environment will be eligible for funding under the 'Green Loans' scheme, provided that the latter is worth more than Rs 1 million and that the benefits thereof are demonstrated to MCB's/AFD's satisfaction.