Funding for seasonal operational costs

Loan

• Amount € 11400.00
• Interest rate 10%
• Term 24m
• Collateral type Land
• LTV 23%

Description

This project provides LANDE investors with an opportunity to finance an agricultural loan secured by a first-rank mortgage on the real estate “Smecernieki”, located in Bauska parish for borrower Edgars Gedrovičs who is engaged in crop production and cattle farming. 

The funding target for this project is € 11400.00, which will be used for seasonal operational costs.

Annual interest 10%, LTV 23 %, loan term: 24 months, with a monthly manner of interest and principal payments.

The collateral consists of a land plot with a total area of 12.3 ha consisting of agricultural land and forest land. To secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 22800.00  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 € 49704.00 subsequently making loan to collateral value ratio (LTV) - 23%.

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 is € 5000 per ha.

Documents

• Market review - SMECERNIEKI, BRUNAVAS PAG., BAUSKAS NOV., LV-3907

Other borrower loans

• Funding for repair of machinery