OTP Bank Romania continues to develop solutions for financing the local agribusiness sector and launches a new credit product designed for legal entities and liberal professions in agriculture, named “Ceiling for financing agricultural crops”, for which no additional guarantees are requested.
The “Ceiling for financing agricultural crops” has a credit limit of up to 5 million lei, being intended to finance spring, autumn and corn crops, and helps farmers that need financial support and working capital in order to finance their seasonal agricultural works. For this purpose, the product covers expenditures incurred throughout the production cycle for items such as agricultural inputs, fuel, seeds, crops treatment or harvesting costs.
“This credit product is the result of collaborations that we have been developing for several years with our partners in the agricultural sector. It is an area with a very good potential, with a major importance in the local economy, and for which we design new products and assign significant resources. We work closely with local farmers, and we constantly see the change in their funding needs, that is why we now launch this customized product, according to the specifics of the crop. Thus, they can carry out specific works according to the agricultural planning and benefit from a pressure-free repayment period”, said Roxana Hidan, Deputy CEO of the Business Division, OTP Bank Romania.
Ceiling for financing agricultural crops:
- Maximum amount of the ceiling: up to RON 5,000,000.
- Ceiling period: 19 months
- Reimbursement of the amounts used is made in full at the maturity of each use within the ceiling, in a single installment, correlated with the specifics of each type of crop.
- Interest: will be paid monthly / quarterly / seasonally, depending on the specifics and type of financed crops.
- Mandatory guarantee structure, with value:
- Mortgage on the current accounts of the borrower opened with OTP Bank Romania S.A.
- Guarantee contract or promissory note credited by the majority shareholder / associate / administrator of the entity.
- Movable mortgage on financed agricultural crops.
- Insurance policy for the funded crops.
OTP Bank’s product portfolio designed for the agricultural sector also offers the possibility to prefinance up to 160% of the APIA SAPS subsidy. The APIA SAPS subsidy pre-financing credit is a well-rounded product that supports the day-to-day work of its beneficiaries, including redistributive payments, greening payments, and compensatory measures, a press release issued by the financial institution reports.