This project provides LendSecured investors with an opportunity to finance an agricultural loan secured by a first rank mortgage on the real estate “Jāņi”, located in Rožkalnu parish, Līvānu region for a self-employed farmer. The funding target for this project is € 6 200.00, which will be used in order to purchase cattle.
This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 54%, loan term of 12 months, with monthly manner of interest and principal payments.
The collateral consists of an agricultural land plot with a total area of 7 ha. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 12 400.00 will be registered on the collateral in the Land Register of Latvia.
The current market value of the collateral is estimated at € 11 560.00 subsequently making loan to collateral value ratio (LTV) - 54%.
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 € 1 800 per ha.
Borrower is self-employed in the agricultural sector and is engaged in dairy farming and cattle breeding. Borrower is seeking the funds to expand the farm and purchase more cattle.
Borrower aims to repay the loan from incoming business revenues. The borrower is a recipient of support payments from European Agricultural Guarantee Fund and European Agricultural Fund for Rural Development. For additional guarantee the daughter of the borrower is providing a personal surety ship in the full loan amount.