KfW: low-interest credit for innovation.
KfW's innovation and digitalisation loans finance R&D, new products and digital transformation at favourable, promotional terms. We structure the case and run it through your house bank.
Promotional finance for innovation
The KfW innovation and digitalisation loans (e.g. the ERP-Digitalisierungs- und Innovationskredit) provide low-interest financing for R&D, market introduction and digital transformation, often with the bank’s risk partly shared.
Unlike a grant, this is finance: favourable rates, long terms and, for many borrowers, partial liability relief for your house bank. It runs on the Hausbank principle. See who qualifies further down.
It's finance, not a grant, but on terms a bank can't match
A KfW innovation loan is repaid, but at subsidised interest, with long maturities and, crucially, risk relief that makes your house bank comfortable saying yes.
Subsidised rates set by your risk and collateral class, well below a standard commercial loan.
Loan volumes large enough to fund a serious innovation or digitalisation programme.
A liability exemption (Haftungsfreistellung) of up to ~70% lifts much of the risk off your house bank, often the difference between yes and no.
KfW lends through your bank (Hausbankprinzip). We prepare the case and coordinate both sides.
The two products we use most
The right KfW programme depends on whether your project clears the innovation/digitalisation criteria, and on your company's age and size. We match it.
ERP-Digitalisierungs- und Innovationskredit
The flagship for R&D, new products and processes and digital transformation, with risk relief for your bank. The first choice when the project qualifies as innovation or digitalisation.
KfW-Unternehmerkredit
For established companies financing investment and working capital where the innovation criteria don't fully apply, a flexible promotional fallback.
Indicative programme features. Exact volumes, terms, interest and liability-exemption levels follow the current KfW programme conditions, we confirm them with you and your house bank. kfw.de
The terms at a glance
A KfW loan is repaid, but on terms a commercial bank rarely matches. The figures are programme-specific; these are the headline parameters of the core business loans.
up to €25m
loan amount
In the core SME loan; larger sums in the Mittelstand programme.
up to 100%
financing
Of eligible costs, with full disbursement and no up-front deduction.
up to 20 yrs
maturity
With one to three grace years, so early liquidity is protected.
up to 80%
liability release
KfW can take part of the bank's risk (80% for founders, 50% in the SME loan).
You apply through your own bank (the Hausbankprinzip), always before you start. The interest rate is set per borrower through KfW's risk-adjusted system, capped under a published maximum for your price class.
Who it's for, and the house-bank route
KfW does not lend to you directly. You apply through your own bank, always before the project starts.
The ERP-Förderkredit KMU serves SMEs; a parallel programme covers the larger Mittelstand on similar terms.
Dedicated start-up programmes such as the ERP-Gründerkredit StartGeld for companies under five years old.
You apply through your own bank, which forwards the application to KfW, and always before you sign or start.
KfW can take on part of the bank's default risk (50% in the SME loan, up to 80% for founders), so a bank lends even to thin-collateral firms.
Why there's no single headline rate
KfW uses a risk-adjusted interest system, so your rate is set for your case, under a published ceiling.
Your bank maps your creditworthiness and collateral to a KfW price class, each with a capped maximum rate.
The rate is below the open market and capped under the published maximum, with full disbursement and no up-front deduction.
It is a loan, repaid, but with long maturities, grace years and liability release a commercial bank rarely matches.
What a KfW innovation loan funds
Promotional credit is flexible: it can finance the whole project, not just the hardware.
Machinery, equipment, buildings and other fixed assets for the new product, line or site.
The operating resources an innovation or growth project ties up, financed alongside the investment.
Development costs, software, and platform or digitalisation projects, where the innovation programmes apply.
The loan can cover the full eligible cost and is disbursed in full, with no up-front deduction.
See if your project fits a KfW innovation loan
Tell us about your project. A funding advisor reviews your case by hand, then either comes back with feedback or a few follow-up questions. No obligation.
- Whether a KfW loan is the right fit
- A first read on the funding amount
- What to prepare before you apply
From first call to funding
Four steps. You stay focused on the work; we handle the funding end to end, on a success-based fee.
Eligibility check
We review your project against the programme's criteria, confirm it qualifies and give you a realistic figure before you commit any time.
Application
You tell us what you are working on; we build the application, write the technical case and manage the entire submission for you.
Submission & review
We file with the responsible authority in your name and handle every query through to the funding decision.
Funding
Once approved, we prepare the required reporting so the funding is released to you, accurately documented and on time.
KfW in practice
Real projects we have taken through KfW, from first scoping to the funding decision. Anonymised, figures as orders of magnitude.
How a manufacturer financed a new product line with a low-interest KfW innovation loan - what a KfW…
Read the story
How a company financed the scale-up of an innovative product to series production with a low-interest…
Read the story
How a company financed a digitalisation and platform-rebuild programme with a low-interest KfW loan…
Read the storyIndustries we fund
We've secured German and EU funding across the innovation economy. If you're doing genuine development, your field almost certainly fits.
KfW guides
Long-form explainers from our knowledge hub, for teams who want the detail before they talk to us.
Which KfW loan fits
ERP innovation loan vs. the broader Unternehmerkredit.
Read more → GuideHaftungsfreistellung explained
How risk relief gets your house bank to say yes.
Read more → GuideThe house-bank route
How the Hausbankprinzip works, step by step.
Read more → GuideLoan vs. grant
When promotional finance beats a non-repayable grant.
Read more → GuideWhich KfW loan fits
ERP innovation loan vs. the broader Unternehmerkredit.
Read more → GuideHaftungsfreistellung explained
How risk relief gets your house bank to say yes.
Read more → GuideThe house-bank route
How the Hausbankprinzip works, step by step.
Read more → GuideLoan vs. grant
When promotional finance beats a non-repayable grant.
Read more →KfW innovation-loan questions, answered
The basics on terms, volume and the house-bank route.
No, it is promotional finance: a low-interest loan, sometimes with partial liability relief for your bank. It is repaid, but on far better terms than a standard loan.
Programme-dependent, commonly up to €25m per project. The right figure depends on your plan and the specific KfW programme.
Through your house bank, the Hausbankprinzip. We prepare the case and coordinate with the bank and KfW.
R&D, new products and processes, market introduction and digital-transformation investments.
Nothing upfront, our fee is success-based and only due once financing is secured.
Ask us anything
Tell us about your project and we'll assess your case by hand. No prep, no obligation. Prefer to talk?