This project provides LendSecured investors with an opportunity to finance an agricultural loan, secured by a first-rank mortgage on the real estate “Staburags”, located in Ludzas region. The funding target for this project is € 10700, which will be used in order to purchase machinery and refinance previous business loan.
This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 37%, a loan term of 24 months, with the monthly manner of interest and principal payments.
The collateral consists of two land plots, “Staburags” Ņukšu parish, Ludzas region, consisting of 12,4ha of which 8.5ha is agricultural land and 3.9ha is forest area. Cadastre nr. 68800010183. Second land plot “Ņukši”, Ņukšu parish, Ludzas region consisting of 2.1ha of agricultural land and 1.2ha of forest area Cadastr nr. 68800010105. The market value of the collateral is estimated to be 29228 EUR.
In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 21400 is registered on the collateral in the Land Register of Latvia. Aside from the mortgage, the collateral is debt-free.
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 Borrower is a self-employed farmer engaged in vegetable farming and forestry of Ludzas region and operating since 2006. The borrower wants to repay the previous business loan and acquire extra funds for the purchase of agricultural machinery.
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.