Agribusiness loan based on eligibility for subsidies

Borrowers

• Family farms, small businesses or companies dealing with some kind of agribusiness, and agriculture subsidy beneficiaries. Before applying for a loan the following conditions must be met:
• Regular transaction account in OTP banka
• All regulatory preconditions for eligibility for the subsidy
• Submitted single application form for subsidy in the current year (filled in the soft copy via AGRONET, signed and delivered to the Rural Payments Agency)
• The beneficiary has benefited from the national subsidy schemes before

Loan purpose

• The amount is determined based on the amount of subsidies paid in agriculture for the previous year and the request for the current year up to a maximum amount of 170% of the realized incentives.

Fee

• Holders of the Agribusiness Package are entitled to a 50% discount on the front-end fee, and otherwise the fee equals 1% of the granted amount.

Repayment deadline

• Maximum repayment term is 30 months. The loan falls due in bullet payment, whilst the interest falls due quarterly and is collected via standing order set up on the transaction account to which the subsidy is credited. It is up to the borrower whether the entire subsidy amount will be used for settlement of the liabilities under the loan, or whether the entire debt will be settled from own funds before the maturity date.

Security instruments

• If the borrower is credit worthy, the loans up to EUR 30,000 can be granted against negotiable security instruments (bills of exchange and debit notes). Larger amounts, however, call for special arrangements.