Agricultural loan for farmhouse repairs and modernization
This project provides LendSecured investors with an opportunity to finance an agricultural loan in the amount of € 3250 secured by a first-rank mortgage on the real estate “Dravnieki”, located in Leimaņu parish, Jēkabpils region.
This project gives an opportunity to make a loan with an annual rate of 10%, LTV of 14%, a loan term of 12 months, with the monthly manner of interest payments.
The collateral consists of a land plot with a total area of 8.93 ha, which consists of agricultural land. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 6500 will be registered on the collateral in the Land Register of Latvia. Aside from the mortgage, the collateral is debt-free.
The current market value of the collateral is estimated at € 23218 subsequently making a loan to collateral value ratio (LTV) - 14%.
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 is around €2600 EUR.
The Borrower is self-employed in the agricultural sector and is engaged in dairy cattle farming. The funds will be used to repair and modernize farmhouse.
Borrower aims to repay the loan from incoming business revenues.