An investment loan is bank financing for the acquisition or modernisation of fixed assets. With longer maturities and lower interest rates, it helps spread the cost of a project over time – whether it’s a start-up or buying a second home to rent. How does an investment loan work, who can access it and how do I apply successfully?
An investment loan is a special-purpose banking product designed to finance long-term investments – typically used to buy property for rent, build a production hall or acquire machinery or technological units. The bank will lend you a larger amount (from hundreds of thousands to tens of millions of CZK) and you repay it in regular instalments. The bank mainly assesses your creditworthiness (ability to repay) and the quality of the collateral. For larger projects, a detailed payback study or contracts with customers are a matter of course.
In these instalments, you pay both the annuity (principal + interest) and the fees (for processing, administration, possible collateral).
Because the loan often covers tangible or intangible assets with a longer lifetime, its maturity is usually longer than that of an overdraft or operating loan, usually 5 to 20 years. The longer the maturity, the lower the monthly repayment but the higher the total interest.
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The investment loan can be used by a wide range of entities that plan longer-term appreciation of their funds through the acquisition of assets or the implementation of investment projects. It is most often used by individuals who want to invest, for example, in the purchase of a rental apartment, a holiday cottage or the installation of photovoltaic panels on the roof of a family home. Such an investment is usually aimed at generating additional income or reducing household costs, such as energy costs.
But investment loans are also a very common tool for entrepreneurs and self-employed people. They can use them to buy production machinery, vehicles, e-commerce technology or finance the development of their own software. In their case, it is mainly to increase business efficiency, expand the range of services or enter new markets.
Smaller and medium-sized companies also often use investment loans to develop their business. Typical examples are the expansion of premises, the modernisation of machinery, the purchase of specialised equipment or major refurbishments of premises. These investments allow firms to grow, increase competitiveness and often reduce operating costs.
Last but not least, municipalities and non-profit organisations can also benefit from investment loans. For them, it is a way to finance the construction of public infrastructure such as roads, sidewalks, sewers or public lighting, as well as the construction of schools, nurseries, cultural facilities or community centres. In these cases, the investment loan usually has a significant social impact and is often complemented by grants or other public support.
Most banks offer an investment loan even without a business history, as long as you have sufficient collateral and a well-developed business plan.
Investment loans differ not only in purpose but also in the length of repayment, which affects the amount of monthly repayments, the total cost of the loan and the type of projects that can be financed with the loan. The basic division distinguishes between short-term, medium-term and long-term investment loans, each type having its specific advantages and limitations.
A short-term investment loan, i.e. with a maturity of up to 3 years, is particularly suitable for projects with a quick return. It is typically used, for example, to purchase stock to be sold within one season or to finance temporary investment needs with a clear view to an early return. However, the short maturity means higher regular repayments and usually a higher interest rate. On the other hand, the borrower gets rid of the liability quickly and minimises the total interest cost.
Medium-term investment credit with a maturity of between 3 and 7 years is one of the most common forms of financing for business investments. It is ideal, for example, for the acquisition of production technology, machinery or rolling stock. This type of loan represents a compromise between the amount of the monthly repayment and the total interest cost. The loan is spread over a longer period, which allows for better cash flow planning without over-indebtedness.
A long-term investment loan with a maturity of 7 to 20 years is usually used for large-scale projects such as the purchase or construction of real estate, the installation of renewable energy sources or the financing of demanding technological innovations. Due to the long repayment period, monthly repayments tend to be the lowest, which is advantageous from a budgetary point of view. On the other hand, it is often necessary to fix the interest rate for a longer period and to provide collateral, typically in the form of a mortgage on the property. This type of loan is a strategic tool for the long-term development and transformation of a business or public service.
While the average interest rate on investment loans was over 9% in 2022-2023, it dropped below 7% in 2025 due to the reduction of base rates by the CNB. The total cost is quantified by the APR– the annual percentage rate of charge. It includes:
Example. This is CZK 736,000 more than you borrowed.
Advantages:
Disadvantages:
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An investment loan is a purpose-built instrument for financing fixed assets such as real estate, technology or production equipment, which allows high upfront costs to be spread over a longer time horizon. It is used by individuals, entrepreneurs, companies and municipalities, not only to grow or secure income, but also to modernise or expand operations. Loans vary in maturity (short-term up to 3 years, medium-term 3-7 years and long-term up to 20 years), with the longer the repayment period, the lower the monthly repayments but the higher the overall overpayment. Interest rates have fallen below 7% in 2025 due to the CNB rate cuts, but the overall cost is better captured by the APR, which includes fees and other expenses. The advantage of an investment loan is the possibility of an earlier realisation of a profitable investment, tax deductibility of interest and depreciation, while the disadvantage is the need for collateral, the long-term commitment and the risk of future rate increases. The key to a successful application lies in a good business plan, sufficient collateral and a comparison of offers from several banks.
Ve většině případů ne. Banka požaduje nemovitost, stroj nebo garanci mateřské firmy. Bez zajištění bývá úrok citelně vyšší.
Samotné splátky nikoliv, ale úroková část splátky ano. K tomu připočtěte odpisy majetku.
Obvykle do 70 % hodnoty kupované nemovitosti. Nad rámec může být nutné ručení dalším majetkem.
Závisí na vývoji sazeb. V roce 2025 volí většina investorů 3–5letou fixaci, aby mohli refinancovat při poklesu sazeb.
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