Agricultural loan for purchase of machinery and refinance of business loan

Description

This project gives LendSecured investors an opportunity to provide seasonal funding in the amount of € 27539.18 for Jelgavas rajona Glūdas pagasta zemnieku saimniecība “AUCES KLEIŠI”, registration No. 48501012603, with an aim to fund a purchase of new machinery – Siva Nova no-till technology 3m seed drill, and refinance previous business loan.

This project gives an opportunity to make a loan with an annual rate of 10%, LTV of 15%, a loan term of 12 months, with a full loan and interest repayment at the end of the term.

Jelgavas rajona Glūdas pagasta zemnieku saimniecība “AUCES KLEIŠI”, registration No.48501012603, is a family-operated business developed in 1995 and engaged in mixed farming. In order to secure the repayment of the loan, the collateral consists of agricultural land, “Auces Kleiši” Glūdas parish, Jelgavas region, consisting of 33.4 ha. Cadastre nr. 5452 001 0016. The market value of the collateral is estimated to be 183 700 EUR.

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.

In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 55 078.36 is 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.

Collateral

• Country Latvia, LV
• Collateral Type Land
• Collateral Value €183,700.00
• LTV 15%