Loans for agrarian business

The product is aimed at meeting short-term needs in operating capital of agricultural producers in order to finance the production season: from land preparation till sowing and harvesting. The main source of repayment is the sale of the harvest.

Benefits: 

• Constant access to funds,
• Full consistency with the production cycle,
• Fast approval,
• Maximum flexibility,
• Estimated cost

Targeted use:

• Purchase of seeds, fuel, fertilizers, spare parts, payment of wages, payments for land rent, other costs related to production of crops

Loan Type:

1. Non-revolving credit facility with a grace period for repayment of principle of the loan and periodic repayment schedule
2. Credit facility with separate sublimit for financing the trade activity (for producers who are engaged in crops trade)

Amount: from UAH 5 mln.

Currency: UAH, USD and EUR for exporters

Term: up to 16 months

Repayment: Grace period for loan repayment – up to 9 months
Every month/every quarter by equal or unequal installments
For credit facility under trading transactions – tranches up to 90 days

Interest rate: fixed one for all the term or market rate for each tranche

Collateral: Fixed productive assets. Collateral value of fixed assets (real estate, equipment) has to cover not less than 100% of the loan. Other security including collateral for insured/ uninsured future crops – not less than 50% of loan.

The product is aimed at meeting the producer’s needs in operating capital after collecting the harvest, but before its sale. The main value for the client is to receive the maximum flexibility regarding the time of sale and cost of the harvest and availability of sufficient financing for current needs of the  enterprise. The term of the loan is shorter than of the loan for sowing time. The main source of debt repayment is the sale of pledged harvest.

Advantages:

• Fast approval,
• Acceptable security ratio,
• Market price for property in collateral,
• Fast and efficient release of collateral property,
• Repayment schedule consistent with sale of goods.

Targeted use: General replenishment of operating capital, refinancing of the loan received for sowing.

Loan type: Non-revolving credit facility with a grace period for repayment of the principle of the loan and repayment schedule

Amount: from UAH 5 mln.

Currency: UAH, USD and EUR for exporters

Term: Up to 6 months, but not later May 31

Grace period: Up to 3 months

Repayment: Every month by equal / unequal installments

Interest rate: Fixed

Collateral: Double storage certificates for agricultural products stored in certified granaries. Minimum coverage – 125% of the loan amount.
If the goods are stored in own storage facilities – guarantee of main shareholders or fixed assets for minimum 75% of the loan, if the goods are stored in grain elevators of unrelated persons – double storage certificates.

The product is aimed at meeting long-term needs of agricultural producers in order to improve/ to expand the farm machinery equipment row used in production. The main source of repayment is the sale of own products.

Advantages:

• Flexibility in choosing equipment;
• No need in additional security;
• Consistency with the cycle of production;
• Fast approval.

Target: purchase of new tractors, combines, seeders, other equipment for growing products

Loan type: Term loan or non-revolving credit facility with a grace period for payment of the principle of the loan and repayment schedule.

Amount: from UAH 1 mln

Currency: UAH, USD and EUR for exporters

Initial installments: from 25% of cost of the equipment

Term: up to 36 monthes

Repayment: up to 9 months of the grace period during each production season. By equal/unequal installments every month/every quarter

Interest rate: fixed, up to 12 months

Collateral: purchased equipment

The product is aimed at meeting long-term needs of agricultural producers in order to repair/ to replace/ to expand storage facilities. The main source of repayment is the profit from sale of agricultural products.

Advantages: 

• Acceptable period of consideration of the application;
• Flexibility in choosing contractors and equipment;
• Consistency of repayment with the cycle of production.

Target: Financing of purchase of building materials, equipment, construction works required for repair / replacement / extension of warehouses

Loan type: Non-revolving credit facility with a grace period for repayment

Amount: From UAH 10 mln.

Currency: UAH, USD and EUR for exporters

Own participation: From 30% of the expected costs

Term: up to 36 months

Repayment: Grace period is for up to 1 year, but not more than 3 months after the date of termination of construction and up to 9 monthes during each production season.

By qual/unequal installments every month/every quarter.

Interest rate: fixed one for 12 monthes, is reviewed annually, fee for issuing the loan

Collateral: Till termination of the construction period – fixed production assets (mortgage, equipment) of not less than 100% of the amount of the loan. After commissioning – completed object wih coverage of 140 % of the loan amount. Guarantee of main owners/ shareholders.