Funding for repair of machinery

Loan

• Amount € 5700.00
• Interest rate 10%
• Term 24m
• Collateral type Land
• LTV 11%

Description

This project provides LANDE investors with an opportunity to finance an agricultural loan secured by a second rank mortgage on the real estate "Smecernieki", located Brunavas pag., Bauskas nov., LV-3907, (40460150016). The funding target for this project is € 5 700, which will be used in order to repair machinery.

This project gives an opportunity to make a loan with an annual rate of 10%, LTV of 11%, loan term of 24 months, with monthly manner of interest payments and full repayment of the principal at the end of the loan term.

The collateral consists of a land plot with a total area of 12.3 ha consisting of agricultural land and forest land. In order to secure the claims, arising out of loan agreements a first-hand mortgage in the amount of € 11 400 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 € 50 000 making loan to collateral value ratio (LTV) - 11%.

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 € 5000 to € 8000 per ha.

Borrower aims to repay the loan from incoming business revenues. For additional guarantee the owner of the farm is giving a personal surety in the full loan amount.

Documents

• Market review

Other borrower loans

• Funding for seasonal operational costs