Investing in agricultural loans on HeavyFinance just got more secure. Due to a signed new partnership, part of loans for Lithuanian farmers is backed with a state guarantee with the repayment of up to 80% of the outstanding credits.
The agreement to participate in a state guarantee scheme was signed with the Agricultural Credit Guarantee Fund of Lithuania. Consequently, for loans meeting the criteria of the Fund more financial protection will be granted. This program is part of a wider effort to promote small and medium-sized farms in the country.
In case of a default, the Fund pays the difference between the unpaid credit amount or any portion thereof, and the income received by the credit institution from the exaction.
The state guarantee shall be provided only to finance financially sound and commercially feasible projects and to the economic entities that are not considered to be undertakings in difficulty.
You can read more about this guarantee provided by the Agricultural Credit Guarantee Fund of Lithuania here.
For a more updated explanation of the types of collateral available when getting a loan with HeavyFinance read our article: Types of Collateral