This project provides LendSecured investors with an opportunity to finance an agricultural loan secured by a first-rank mortgage on real estate “Dzegužkalns”, located in Silmalas parish, Rēzeknes region for a self-employed farmer. The funding target for this project is € 6000.00, which will be used for seasonal funding.
This project gives an opportunity to make a loan with an annual rate of 10%, LTV of 45%, a loan term of 12 months, with a monthly manner of interest payments.
The collateral consists of a land plot with a total area of 6.3 ha, consisting of agricultural land and forest. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 12 000.00 will be registered on the collateral in the Land Register of Latvia.
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 € 1 900 EUR per ha to € 2 300 per ha.
The borrower is a self-employed farmer engaged in buckwheat farming. The borrower is seeking funds for next season. Borrower aims to repay the loan from incoming business revenues. The borrower is a recipient of support payments from the European Agricultural Guarantee Fund and the European Agricultural Fund for Rural Development.