Loan for purchasing agricultural land

• Financing the purchase of agricultural land.

• From RSD 5,000 to RSD 200,000 in RSD countervalue at the middle exchange rate of the NBS on the day of releasing the loan, depending on the credit capacity of the Borrower.
• Term of repayment of the loan is up to 240 months with a possibility of grace period of 12 months that is included in the term of repayment of the loan.
• The loan is to be repaid in equal monthly annuities.

The loan is released by a cashless transfer of funds of the granted loan to the account of the seller of property that is the subject matter of lending.

For the period of first 3 months, i.e. after the expiry of period of 3 months until the date of the first adjustment of interest rate, it is fixed and amounts to 2.00% annually.

After 3 months, i.e. after the date of the first adjustment of interest rate, it is variable and established as a sum of the value of 6M EURIBOR applicable on 31 May and 30 November and the fixed margin that is 2.00% annually.

Interest rate shall be changed two times a year and the newly set interest rate shall be calculated on the balance of debt of immature principle as at 30 June and 31 December each year. The interest shall be calculated by applying the pro rata method.

During the grace period the Bank shall calculate an intercalary interest on the granted loan at the interest rate that is equal to the agreed (regular) interest rate. The intercalary interest shall be applied to the principal debt on the day when the loan is transferred to repayment and the principal increased like that represents a basis for making up an annuity plan.

A default interest is at the level of legal default interest, i.e. agreed (regular) interest if it is higher.

The Bank shall calculate a fee for the realization in the amount of 1.5%, one-off, fixed on the amount of the loan granted. The fee shall be charged in RSD, i.e. RSD countervalue at the middle exchange rate of the NBS on the date of its payment.

The Bank shall calculate a commission for the monitoring of the loan. It shall be calculated in the amount of 1% on the remaining part of the immature principle with the balance as at 31 December of each year.

This commission shall be charged in RSD, i.e. in RSD countervalue at the middle exchange rate of the NBS on the date of its payment.

Charging of the commission for monitoring the loan shall not be calculated during the grace period.

The Borrower can make a partial or early repayment of the total unrepaid loan, free of charge, with a written request to the Bank.

The costs that are to be debited to the Borrower are known at the moment of advertising and they are included in the calculation of the effective interest rate.

• Costs of issuing the Credit Bureau report - RSD 246;
• Cost of four promissory notes – RSD 200;
• Cost of obtaining a Certificate of Settled Tax Liabilities issued by the Ministry of Finance – Tax Administration – RSD 660.

Other costs on whose amount the Bank does not have any influence (fees of assessors, notaries/courts, the Land Register Service, the Business Registers Agency, insurance premiums of insurance companies).

Mandatory collateral:

• 4 (four) blank promissory notes with the "no protest" and "no report" clause signed by the Borrower with the promissory note authorization for signing and using them. The Borrower is obliged to provide a title of deed representing a cover for the issued promissory notes with a statement that the he/she shall not sell/burden them until the final settlement of obligations on the loan;
• First order mortgage on agricultural land free of burden, in the minimum value ratio 1:1 on the amount of the loan granted (principal debt), established in favour of the Bank.

AAdditional collaterals (if necessary, depending on the amount of the loan, creditworthiness, etc.):

• Guarantee of a legal entity and/or individual, no matter whether a creditworthy guarantor individual or individual who has properties in his/her ownership is in question;
• Lien on movable property;
• Insurance policy on movable property vinculated in favour of the Bank, issued by insurance companies acceptable to the Bank;
• Mortgage on other immovable properties.

• An Agricultural Loan Application (the Bank’s form 1);
• A copy of ID card;
• From the Agrarian Payments Administration (the documents must not be older than 30 days following the day of applying for the loan) the following:
  • A certificate of the status in the Agricultural Holdings Registry
  • An excerpt from the Agricultural Holdings Registry – data on the registered agricultural holding
  • An excerpt from the Agricultural Holdings Registry – structure of the plant production
  • An excerpt from the Agricultural Holdings Registry - cattle
• A certificate of settled/rescheduled tax liabilities issued by the Ministry of Finance – Tax Administration (not older than 30 days following the date when the loan application was submitted)
  • A certificate (turnover card) of banks on the turnover realized through all special-purpose agricultural accounts in the previous 12 months;
  • A Decision on Determination of Tax on Property of Individuals (last available) or other deed of title on movable and immovable property;
  • If the salaries or pensions of members of the agricultural holding are also to be taken for the evaluation of creditworthiness, the following documentation should be also obtained:
    • a) for pensioners (who do not hold a current account opened with the Bank): three last pension checks are to be submitted;
    • b) for the employees (who do not hold a current account with the Bank): a turnover on the current account for the last 3 months from the bank in which they receive their salaries, a completed Certificate of Employment and Income are to be submitted;
• A basic report of the Credit Bureau for a guarantor (if a guarantee is required)
• Depending on the assessment of the Bank and the amount of the loan: the documentation regarding the establishing of a lien on the movable/immovable property (if necessary);
• Preliminary contract on purchasing agricultural land (it does not have to be certified at the moment of applying; for the realization of the loan the contract must be certified by a notary);
• A copy of ID card of the seller;
• A copy of ID card of the seller’s spouse (in case when the land that is the subject of the purchase is marital property);
• Basis of acquiring the land (if the property has not been acquired during their marriage; contract on gift, decision on inheritance, etc);
• Evaluation of the market value of the agricultural land (made up by an authorized evaluator on the list of the Bank).