Agricultural loan for farm modernization

Kredit

• Betrag €21,400.00
• Zinssatz 11%
• Laufzeit 24m
• Art der Sicherheit Land
• Beleihungsquote 33%

Beschreibung

This project provides LendSecured investors with an opportunity to finance an agricultural loan secured by the first-rank mortgage of the real estate “Bruņenieki”, Elkšņu parish, Jēkabpils region, for a self-employed farmer that is engaged in garlic farming. The funding target for this project is € 21400, which will be used for farm modernization.

This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 33%, a loan term of 24 months, with a monthly manner of interest and principal payments.

The collateral consists of a total area of 27.4 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 € 42800 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 € 2 500 EUR per ha to € 2 700 per ha.

The borrower is a self-employed farmer engaged in garlic farming. The borrower is seeking funds to modernize his farm. 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. 

Dokumente

• Market review