This project provides LendSecured investors with an opportunity to finance an agricultural loan secured by a first-rank mortgage on real estate “Silāres”, located in Sunas parish, Preiļu region for a self-employed farmer. The funding target for this project is € 4235, which will be used for barn building repairs.
This project gives an opportunity to make a loan with an annual rate of 10%, LTV of 31%, a loan term of 24 months, with a monthly manner of interest and principal payments.
The collateral consists of a land plot with a total area of 6.3 ha, consisting of agricultural land. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 8470.00 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 € 2 000 EUR per ha to € 2 400 per ha.
The borrower is a self-employed farmer engaged in beef cattle breeding. The borrower is seeking funds to repair the existing barn. 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.