This project provides LendSecured investors with an opportunity to finance an agricultural loan in the amount of € 7 200 secured by a first rank mortgage on the real estate “Daiļi”, located in Mazzalves parish, Neretas region.
This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 52%, loan term of 12 months, with monthly manner of interest and principal payments.
The collateral consists of an agricultural land plot with a total area of 6.2 ha. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 14 400 will be registered on the collateral in the Land Register of Latvia. Aside from the mortgage, the collateral is debt free.
The demand for agricultural land currently in Latvia exceeds supply and 25% of farmers are forced to rent the land, as there is none available on the market. The price of agricultural land plots in the parish of the collateral ranges from € 2 200 EUR per ha to € 2 300 per ha, thus making the current market value of the collateral at € 13 950 and subsequently making loan to collateral value ratio (LTV) - 52%.
The Borrower is “Ozolkalni” Mazzalves pagasta Māra Daiļa zemnieku saimniecība, registration No.48701009466, which is operating since 1993 and engaged in mixed farming. The funds will be used for the purchase of new machinery in order to cultivate the land.
Borrower aims to repay the loan from incoming business revenues.