Investment financing for Young/New Farmers

Investment financing for Young/New Farmers
DESCRIPTION
Purchase land and mechanical equipment

Purchase and construct agricultural buildings

Purchase plants and farm animals
IDEAL FOR

Persons aged 19-50 who want to become at main profession farmer
INTEREST RATE

Variable based on the BRF

Up to 100% subsidized interest rate for people aged up to 40

DURATION
To purchase mechanical equipment: duration up to 10 years

To purchase land and construct agricultural buildings: duration up to 15 years

To purchase plants: duration up to 8 years

To purchase farm animals: duration up to 6 years
REPAYMENT
In monthly, 3-monthly, 6-monthly or annual instalments
FINANCING
AMOUNT

From €5,000 to €500,000 

Maximum Financing Amount: up to 80% of the estimated cost and up to 80% of estimated value of the mortgaged property
DESCRIPTION
Purchase land and mechanical equipment

Purchase and construct agricultural buildings

Purchase plants and farm animals
IDEAL FOR

Persons aged 19-50 who want to become at main profession farmer

INTEREST RATE

Variable based on the BRF

Up to 100% subsidized interest rate for people aged up to 40

DURATION
To purchase mechanical equipment: duration up to 10 years

To purchase land and construct agricultural buildings: duration up to 15 years

To purchase plants: duration up to 8 years

To purchase farm animals: duration up to 6 years

REPAYMENT
In monthly, 3-monthly, 6-monthly or annual instalments
FINANCING
AMOUNT

From €5,000 to €500,000 

Maximum Financing Amount: up to 80% of the estimated cost and up to 80% of estimated value of the mortgaged property


Features

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: duration up to 8 years
  • To purchase farm animals: duration up to 6 years


LOAN AMOUNT

From €5,000 to €500,000. Maximum Financing Amount: up to 80% of the estimated 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

  • Based on existing pricing policy of expenses and commissions


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.