Who meets the application requirements?
Companies registered under the Commercial Act, registered and entered in the register of Agricultural Producers with at least three years of proven experience in the area of agriculture.
What investments meet the requirements for financing?
Every economically sound and environmental investment geared toward:
1. Purchase of agricultural land:
- minimum 3 decares in South Bulgaria;
- minimum 10 decares in North Bulgaria;
2. Investment in farms, including:
- purchase of new agricultural equipment corresponding to the EU standards.
- purchase and installation of hydro-technical equipment;
- renovation and construction of agricultural buildings;
- creation of perennial plantations;
- building of greenhouses;
- other.
The bank also provides working capital for implementation of the investment.
Amount of loan and borrower participation
The minimum amount of the loan is BGN 20 000.
The borrower’s participation in the financing of the project should be as follows:
minimum 50% for investment in purchasing of agricultural land;
minimum 15% for investment in farms, depending on the type of the project.
Loan conditions
Loans for purchasing of agricultural land and for investment in farms are extended for a period of 4 to 10 years with a grace period of up to 3 years.
Loans for investment in agricultural equipment are extended for a period of 3 to 8 years with a grace period of up to 12 months.
Repayment of the principal is negotiated individually with each borrower and may be in unequal instalments.
What collateral should be provided?
The collateral should correspond to the usual banking practice and the existing legislation in the country. Assets acquired with the bank loan are also part of the collateral for the approved loan.
When purchasing agricultural land, the borrower will be required to provide additional collateral other than the subject of the investment.
Under certain conditions, the bank extends loans under relieved requirements for collateral (up to 85% of the amount of the loan) owing to a guarantee issued by the European Investment Fund under the multi-year programme for small and medium-sized enterprises of the European Community.
