This project provides LendSecured investors with an opportunity to finance an agricultural loan secured by the first-rank mortgage of the real estate “Lauciņi”, Smārdes parish, Tukuma region, for a self-employed farmer that is engaged in cattle farming. The funding target for this project is € 17800, which will be used purchase of land.
This project gives an opportunity to make a loan with an annual rate of 10%, LTV of 48%, a loan term of 24 months, with a monthly manner of interest and principal payments.
The collateral consists of a total area of 9.5 ha, consisting of agricultural land. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 35600 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 € 3 500 EUR per ha to € 4 000 per ha.
The borrower is a self-employed farmer engaged in cereal farming. The borrower is seeking funds to expand his farm, and purchase additional land. 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.