Agricultural loan "Kalnamājas", Saucīne, Šķilbēnu pag., Balvu nov.
This project provides LendSecured investors with an opportunity to finance an agricultural loan secured by a first rank mortgage on the real estate “Kalnamājas”, located in Saucīne, Šķilbēnu parish, Balvu region. The funding target for this project is € 7 300.00, which will be used for the renovation of the farm building.
This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 38%, loan term of 12 months, with monthly manner of interest payments and full repayment of the principal at the end of the loan term.
The collateral consists of an agricultural land plot with a total area of 15.8 ha. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 14 600.00 will be registered on the collateral in the Land Register of Latvia.
The current market value of the collateral is estimated at € 19 100.00 subsequently making loan to collateral value ratio (LTV) - 38%.
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 € 1 300.00 EUR per ha to € 1 800.00 per ha.
The Borrower is self-employed in agricultural sector and is engaged in dairy farming. The funds will be used to renovate a farm building.
Borrower aims to repay the loan from incoming business revenues. Furthermore, borrower has other options of loan repayment at his disposal, for example, refinancing.