This project provides LendSecured investors with an opportunity to finance an agricultural loan secured by a first-rank mortgage on real estate “Vizuļi”, located in Padures parish, Kuldīgas region for a self-employed farmer. The funding target for this project is € 22 500.00, which will be used for farm building repairs and modernization.
This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 18%, a loan term of 24 months, with the monthly manner of interest and principal payments.
The collateral consists of a land plot with a total area of 38.9 ha, consisting of agricultural land and forest. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 45 000.00 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 € 3 200 EUR per ha to € 4 000 per ha.
The borrower is a self-employed farmer engaged in grain farming and cattle breeding. The borrower is seeking funds to repair and modernize the existing farm building. 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.