A Loan for a Farmer – A Loan Against Land.
March 9, 2019
A farmer’s loan for pledging agricultural land and a farm is a financial product that can be easily obtained in our company.
Loans of this type implemented in the range of products available in our credit offer are available for every person who runs a farm.
The loan may be secured by all the plots being part of the farm. The following areas are subject to loading:
- arable lands, marked with the symbol R,
- orchards, marked with the symbol consisting of the letter S,
- permanent meadows, marked with the symbol Ł
- permanent pasture, marked with the Ps symbol,
- developed agricultural land marked with the symbol B.
The amount of the loan is determined on the basis of an extract from the land register and the information contained therein regarding the class of land and the purpose of individual plots.
The applicant for a loan for the farmer should provide all information regarding the specifications of his farm. In addition to the class of land and their use during the analysis of the loan application, the information on the purpose of the funds disbursed from the loan as well as information on the possibility of repayment of the liability are taken into account.
In addition to the abovementioned excerpt from the land register, a very important element is an extract from the land register, but not in every situation. It is required.
Other documents required for this type of loan are described in the documentation tab.
The client requesting a loan does not require documents related to obligations towards KRUS, as well as related to the income earned. This kind of information is declared by the borrower in the form of a statement when signing a loan agreement.
The maximum loan amount
The maximum loan amount for a farmer as a typically off-bank product may not exceed PLN 20,000 per one hectare of land.
The amount of the loan granted is analyzed on the basis of the elements described above and assumes that for plots of land with a land class of 4.5 or 6, the maximum loan level should not exceed PLN 15,000. The remaining plots in the higher class of land can count on the payment of the maximum loan amount described above.
Security for the loan
Residential and commercial buildings are not subject to protection. The only agricultural land is loaded and this information will be entered into the land and mortgage register in the fourth section as a contractual mortgage. This form of security does not limit the right of ownership. Thus, each borrower can freely manage his real estate.
The duration of the loan agreement is determined individually with each client and the length of the contract depends, among other things, on the monthly installment which the client may pay and his financial plan.
From the amount of the loan granted, all liabilities disclosed in the land and mortgage register may be repaid, including bank loans, also debt collection obligations denounced by KRUS and the tax office as well as other loans or private loans. Under the loan granted, it is possible to leave on the mortgage the charges resulting from bank loans, for which there are no arrears resulting from the repayment schedule of the bank loan.
Before signing the loan agreement, each customer can count on early familiarization with the loan agreement project as well as a full schedule of the offer containing information on the cost of the loan. At the moment, on the market of non-bank and private loans, this is one of the few offers for the farmer.