Agricultural loan for barn construction

Kredit

• Betrag €42,100.00
• Zinssatz 11%
• Laufzeit 12m
• Beleihungsquote 52%

Beschreibung

This project provides LendSecured investors with an opportunity to finance an agricultural loan secured by a first-rank mortgage on real estates “Apšu mājas”, “Gravmalas”, “Arāji 3”, “Stukmaļi”, located in Augšdaugavas region for S.Zeiles Dubnas pagasta zemnieku saimniecība “Arāji”. The funding target for this project is € 42 100, which will be used for the construction of new bran for dairy cattle.

This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 52%, a loan term of 12 months, with a monthly manner of interest payments.

The collateral consists of land plots with a total area of 48.34 ha, consisting of agricultural land (34.31 ha), forest (4.16 ha), and scrubs (9.87 ha). In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 84 200 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 for pledged land plots is estimated at around €80 295.40.

The borrower is a farmer engaged in the dairy cattle business since 2008. The borrower is seeking funds to build a new barn for the dairy cattle herd. 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.