Funding for Self-employed farmer

Loan

• Amount € 4912.88
• Interest rate 11%
• Term 23m
• Collateral type Land
• LTV 25%

Description

This project provides LANDE investors with an opportunity to finance an agricultural loan secured by the first-rank mortgage on real estate “Vizuļi”, located in Iecavas parish, Bauskas region for a self-employed farmer. The funding target for this project is € 4912.88, which will be used to re-finance an exisiting loan for which loan term will be extended by additional 23 months.

This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 25%, a loan term of 23 months. The total amounts of payments of the Principal amount of the Loan and the interest for the Loan use are equal in all months of the Loan repayment.

The collateral consists of a land plot with a total area of 3.3 ha, consisting of agricultural land. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 19 800.00 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 of agricultural land plots in the parish of the collateral ranges from € 6000-6500 per ha.

The borrower is a self-employed farmer engaged in bean farming. The borrower is seeking funds to acquire working capital for the next season (purchase of seeds, fertilizers, fuel, etc.). Borrower aims to repay the loan from incoming business revenues.