JOBS MFI provided the first agricultural land lease
The funds will be used for the creation of 125 decares of organic walnut garden
JOBS (JOBS MFI) provided the first agricultural land lease for the creation of a 125 decare organic walnut garden. The subsidiary of the Bulgarian Development Bank has provided financing amounting to nearly BGN 59,000 at an annual interest rate of the 3-month SOFIBOR plus a margin of 6.75%. The investment is in the Malak Manastir Village, municipality of Elhovo, and this is the first project in the field of agriculture for the borrowing company.
The agricultural land lease, which was presented in the end of May is intended for farmers across the country. The Company provides from € 1,500 to € 25,000 to start-up companies for the purchase of agricultural land. The size of the lease for an existing business will be up to € 150,000. The interest rates are between 7.00% and 9.5% at a fixed rate or the 3 months SOFIBOR/ EURIBOR + 6.75% to 9.25% depending on the creditworthiness of the customer. The repayment term of the lease is 12 to 120 months, with a grace period of 18 months for the entire period of the lease. The maximum allowable grace period within a calendar year is six months.
The applicants are required to make a 10% own contribution. The purchased land will be considered collateral. It becomes property of the agricultural producers after the payment of the last installment.
JOBS MFI has supported the business of over 380 Bulgarian micro and small enterprises. The share of credited start-ups is 14%. The biggest share of funding was provided to enterprises from the "Agriculture, forestry and fishing" sector - 42% of the institution's portfolio.
JOBS MFI has 7 business offices in the country located in Burgas, Plovdiv, Pleven, Nova Zagora, Shumen, Vratsa and Montana. The products of the institution are offered through a network of intermediaries in Dobrich, Smolyan, Silistra and Harmanli, Plovdiv, Kubrat, Dulovo, Novi Pazar, Peshtera, Radnevo and Parvomay.