Funding for Self-employed farmer

Loan

• Amount € 11416.04
• Interest rate 11%
• Term 24m
• Collateral type Land
• LTV 40%

Description

This project gives LANDE investors an opportunity to provide funding in the amount of € 11 416.04 for Self-employed farmer to re-finance an exisiting loan for which loan term will be extended by additional 24 months. 

This project gives an opportunity to make a loan with an annual rate of 11% and LTV of 40%. The loan principal payment, loan interest and monitoring fee are paid according to the Annuity principle with an accelerated loan repayment term in one payment.

The borrower is a family-owned farm that is engaged in growing cereals and dairy cattle as well as manages 20 ha of agricultural land. Financial results for 2022 were: declared income € 23 137.64.

This project is pledged by the first-rank mortgage on real estate “Grāvīši”, located in Ļaudonas parish, Madonas region for a family-owned farm.

In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 28 350 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 € 4 000 to 4 500 per ha.

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.