DESCRIPTION
Young/new farmers development loan to:
- Purchase land & agricultural buildings
- Build/finish/renovate agricultural buildings
- Purchase mechanical equipment
- Purchase plants and/or farm animals
IDEAL FOR
Persons aged 19-50 who want to become farmers, whether or not they have participates in a State programme.
ESSENTIAL PREREQUISITES
- Candidate borrowers must be insured with the Greek Agricultural Insurance Organisation (OGA) or must have submitted their vouchers to “OGA” and fulfill the inclusion requirements
- Candidate borrowers must be registered in the Registry of Farmers and Farms (MAAE) or must have submitted the relevant application
INTEREST RATE
Variable based on the BRF.
DURATION
- To purchase mechanical equipment: up to 10 years
- To purchase land and agricultural buildings, and to build/renovate agricultural buildings: up to 15 years
- To purchase plants and/or farm animals up to 6 years
LOAN AMOUNT
From €5,000 to €150,000. Maximum Financing Amount: up to 80% of the estimated investment cost and up to 80% of estimated value of the mortgaged property.
REPAYMENT METHOD
- Quarterly or semi-annual or annual installments
- The payment via standing order from account of deposit
Option of grace period
It depends on the purpose of the loan and the timeframe required within the 1st year to produce and sell agricultural products.
- 1 year: with or without payment of interest
- Up to 3 years: with payment of interest and free payment of capital
OTHER FEATURES
Loan approval fee
(it does not include expenses for: valuation, due diligence, court appearance and mortgage registration, which all are in line with the Bank’s pricelist)
Collateral
- First Mortgage Lien equal to 125% of the loan amount for the plot of land(s) or another property, which must be free from encumbrances
- For collateral against mechanical equipment, a pledge agreement will be made for the purchased equipment, which will be legally served
Insurance
- Obligatory insurance of mortgaged property for FIRE and EARTHQUAKE, for secured capital equal with the constructional value of property
- The customer is liable for cost of insurance, which must be paid on the anniversary date of the loan
- Depending on the financing amount of the investment plan, insurance coverage may also be required for any mechanical equipment
Full or partial early repayment
You may repay all or part of your loan at any time and with no penalty.
Important note
The young or new farmer is contractually obligated to remain a professional farmer at least until full repayment of the loan.
