DESCRIPTION
Financing for farmers to implement their investment plans that are included in the annual Active Protection programme offered by the Hellenic Agricultural Insurance Organisation (ELGA). More specifically:
- To purchase materials and install farming protection systems against hail
- To purchase materials and install farming protection systems against hail and rain
IDEAL FOR
Farmers aged 18-65 (at loan maturity)
ESSENTIAL PREREQUISITES
To be eligible, it is
MANDATORY for farmers to fulfil the following prerequisites:
- Their inclusion in the annual Active Protection programme offered by the Hellenic Agricultural Insurance Organisation should be final
- 15% of the eligible expenditure should be covered by own contribution
INTEREST RATE
Variable throughout the loan term: currently at 7.10% (BRF: 7.10%) plus the Law 128/1975 levy, currently at 0.6% or 0.12% depending on the farmer’s main business activity.
The interest rate is linked to the Base Rate for Farmers index, currently at 7.10%, which follows the market trends, is announced in the Press and is indicated in the Bank’s official pricelist.
DURATION
Up to 6 years, with an option of extending the repayment term
LOAN AMOUNT
From €2,000 to €170,000
Financing may amount up to 90% of the approved subsidy. The Hellenic Agricultural Insurance Organisation subsidy amounts to 60% of the eligible expenditure (before VAT) and is paid to the beneficiary with 3.6% stamp-duty withheld.
REPAYMENT METHOD
Interest is paid every 6 months, on 30/06 and 31/12.
The remaining capital is repaid through the assigned ELGA subsidy, in equal instalments.
OTHER FEATURES
Loan approval fee
- One-off fee: €100
- Fees for bailiff serving of the pledge agreement (in line with the Bank’s pricelist)
Disbursement Method
- Lump-sum or
- In instalments, based on the progress of works and submission of invoices
Collateral
- Legitimate assignment of the eligible Hellenic Agricultural Insurance Organisation subsidy & mandatory bailiff serving of the pledge agreement to the Agricultural Insurance Organisation
- Pledge & blocking of the account to which the subsidy is credited & bailiff serving of the pledge agreement
Full or partial early repayment
-
You may repay all or part of your loan at any time and with no penalty
