Agricultural loan for the repair of the farm building
This project provides LendSecured investors with an opportunity to finance an agricultural loan secured by a first rank mortgage on real estate “Edīte”, located in Stoļerova, Stoļerovas parish, Rēzeknes region for a self-employed farmer. The funding target for this project is € 3 600.00, which will be used to repair the farm building.
This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 27%, loan term of 20 months, with monthly payments of interest and principal.
The collateral consists of 3 land plots with a total area of 7.71 ha. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 7 200,00 will be registered on the collateral in the Land Register of Latvia.
The current market value of the collateral is estimated at € 13 400 subsequently making loan to collateral value ratio (LTV) - 27%.
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. The average price of forest land keep increasing, on average being € 2 140 per ha.
Borrower is self-employed farmer and will use the funds to repair the farm building. The borrower is a recipient of support payments from European Agricultural Guarantee Fund and European Agricultural Fund for Rural Development and aims to repay the loan from incoming business revenues.