Agricultural Loan for Working Assets

• Purchase of seeds, seedlings, fertilizers, protective chemical agents, fuel, fodder and other production materials in agriculture;
• Renting of agricultural land;
• Investments in joint production, etc;
• Refinancing of loans with the Bank and other banks and creditors.

• From RSD 100,000 to RSD 6,000,000;
• Term of repayment of the loan is 36 months with a possibility of grace period of 12 months. The grace period is included in the term of repayment of the loan;
• The loan is to be repaid in monthly, three-month or six-month annuities.

The loan is released by a cashless transfer of funds to the account of the seller based on a proforma invoice issued by the seller and provided by the Borrower or based on a preliminary sales contract concluded between the buyer and the seller and provided by the buyer or the transfer of funds to accounts with other banks (when refinancing loans are concerned) or to the account of the Borrower with mandatory special-purpose justification.

For the period of first 3 months, i.e. after the expiry of 3 months until the date of the first adjustment of the interest rate, it is fixed and amounts to 6.5% annually.

After 3 months, i.e. after the date of the first adjustment of the interest rate, it is variable and set as a sum of the value of six-month BELIBOR applicable on 31 May and 30 November and the fixed margin that amounts to 6.5% 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 the immature principle as at 30 June and 31 December each year.

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 not calculate or charge fee for processing, i.e. realization of the application for the loan.

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 two bills of exchange - RSD 100.
• 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:

• 2 (two) 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.

According to the assessment, depending on the amount of the loan, financial statement and credit risk estimate, the Bank may ask for additional collateral:

• 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, where the Guarantor shall provide: 2 (two) blank promissory notes with the "no protest" and "no report" clause signed by the Guarantor with the promissory note authorization for completing and using the notes;
• Entry of lien on immovable property;
• Entry of lien on movable property;
• Insurance policy vinculated in favour of the Bank;
• Other.

• An Agricultural Loan Application (the Bank’s form 4);
• 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);
• PROFORMA INVOICE for purchasing goods or a preliminary sales contract