Agricultural loan for seasonal funding

Loan

• Amount € 6200.00
• Interest rate 10%
• Term 24m
• Collateral type Land
• LTV 55%

Description

This project gives LendSecured investors an opportunity to provide funding in the amount of € 6200 for a self-employed farmer, for seasonal funding.

This project gives an opportunity to make a loan with an annual rate of 10%, LTV of 55%, a loan term of 24 months, with a monthly manner of interest and principal payment.

The borrower is a farmer engaged in dairy farming. The borrower is seeking funds for working capital this season for the purchase of fuel, net wrap, etc. 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.

The current market value of the collateral is estimated to be € 11 200 subsequently making the loan to collateral value ratio (LTV) - 55%.

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 collateral consists of agricultural land 4,48ha. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 12 400 is registered on the collateral in the Land Register of Latvia. Aside from the mortgage, the collateral is debt-free.

Documents

• Market review