Agricultural loan “Mālkalns”, Lazdukalna parish, Balvu region
This project provides LendSecured investors with an opportunity to finance an agricultural loan secured by a first rank mortgage on half of the real estate “Mālkalns”, located in Lazdukalna parish, Balvu region for a self-employed farmer. The funding target for this project is € 10 000.00, which will be used for the purchase of another real estate.
This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 67%, loan term of 24 months, with monthly manner of interest payments.
The collateral consists of 4 land plots with a total area of 7.8 ha, consisting of agricultural land. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 20 000.00 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 € 1 300 EUR per ha to € 1 900 per ha.
Borrower and his family are self-employed farmers engaged in cattle breeding. Borrower and his family is seeking funds to purchase additional real estate and expand their business. Borrower aims to repay the loan from incoming business revenues. Borrower is a recipient of support payments from European Agricultural Guarantee Fund and European Agricultural Fund for Rural Development.