Refinancing business loan

Kredit

• Betrag €6,337.00
• Zinssatz 10%
• Laufzeit 23m
• Beleihungsquote 23%

Beschreibung

This project provides LendSecured investors with an opportunity to finance an agricultural loan in the amount of € 6337.00 secured by a first-rank mortgage on the real estate “Rozes”, located in Jaunatnes street 4, Vārkava, Vārkavas parish, Vārkavas region.

This project gives an opportunity to make a loan with an annual rate of 10%, LTV of 23%, a loan term of 24 months, with a monthly manner of interest and principal payments.

The collateral consists of 5 agricultural and forest land plots with a total area of 15.99 ha. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 12674 will be registered on the collateral in the Land Register of Latvia. Aside from the mortgage, the collateral is debt-free.

The current market value of the collateral is estimated at € 27 865 subsequently making a loan to collateral value ratio (LTV) - 23%.  Even upon a forced sale, estimating that the real estate will be sold for 30% lower than the market value (€ 19 505), LTV will not exceed 50%.

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 EUR per ha to € 1 700 per ha. The average price of forest land keeps increasing, on average being € 2 140 per ha.

The Borrower is self-employed in the agricultural sector and is engaged in cattle breeding. The funds will be used to refinance an existing business loan that has been partially repaid (previous project - 210430-317681)

The Borrower aims to repay the loan from incoming business revenues (sale of cattle).