Agricultural loan "Vidzemnieki”, Praulienas parish, Madonas region
This project provides LendSecured investors with an opportunity to finance an agricultural loan secured by a first rank mortgage on the real estate “Vidzemnieki”, located in Praulienas parish, Madonas region for a farm owner. The funding target for this project is € 6 174.91, which will be to refinance an existing business loan and obtain additional capital for the repair of the roof a farm building.
This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 19%, loan term of 24 months, with monthly manner of interest and principal payments.
The collateral consists of 3 land plots with a total area of 17.09 ha, consisting both of agricultural and forest land. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 12 349.82 will be registered on the collateral in the Land Register of Latvia.
The current market value of the collateral is estimated at € 32 800.00 subsequently making loan to collateral value ratio (LTV) - 19%.
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 € 1 750 EUR per ha to € 2 600 per ha. The average price of forest land keep increasing, on average being € 2 140 per ha.
Borrower is an owner of a farm focused on animal husbandry, forestry and trade of agricultural products.
Borrower is seeking funds to refinance an existing business loan and obtain additional capital forthe repair of the roof a farm building. Borrower aims to repay the loan from incoming business revenues. Borrower’s farm is a recipient of support payments from European Agricultural Guarantee Fund and European Agricultural Fund for Rural Development.