JOBS MFI will provide funds for agricultural land lease
JOBS MFI, a subsidiary of the Bulgarian Development Bank, launched a leasing scheme for the purchase of agricultural land. The new product is intended for farmers across the country. This was clarified today by the Executive Officer of the institution Kostadin Munev and his deputy Elen Georgiev at a meeting with journalists.
The Company will provide from € 1,500 to € 25,000 to start-up companies for the acquisition of agricultural land. The amount of the lease for an existing business will be up to € 150,000. The interest rates are between 6.75% and 9.5% depending on the creditworthiness of the customer. The deadline for repayment of the loan will be from 12 to 120 months, with a grace period of 18 months for the entire period of the lease. The admissible grace period within a calendar year is up to six months.
Microfinance institution JOBS requires the applicants to provide a 10% contribution. The purchased land will be considered collateral. It will become the property of the agricultural producers after the payment of the last installment.
MFI JOBS has supported the business of over 370 Bulgarian micro and small enterprises. The share of funding of start-ups is 14%. The biggest share of financing is provided to enterprises of the "Agriculture, forestry and fishing" sector - 38% of the institution's portfolio. Second ranked are the companies involved in manufacturing (16%), while the third place is occupied by the companies from the "Trade and repair of motor vehicles and motorcycles" sector (15%). Financing by the subsidiary of BDB has also been provided to micro companies dealing with transport, hotels and restaurants, construction, cultural activities.
So far most funds from Jobs MFI micro loans and leases have been provided to business from the Shumen district - about a quarter of the total amount of loans. Shumen is followed by Dobrich and Sofia, which received respectively 12% and 10% of the funding by the institution. The companies from Silistra, Pernik, Sliven, Burgas, Vidin, Blagoevgrad, Razgrad, Targovishte, Veliko Tarnovo and Plovdiv are also actively seeking small loans.
JOBS MFI grants investment and working capital loans from €1500 to € 150,000 for micro and small businesses, farmers, start-ups and self-employed persons. The company enables the businesses to apply under five leasing schemes. Through financial leasing MFI JOBS provides up to € 25,000 for the purchase of new and used machinery, equipment, vehicles and agricultural equipment. The repayment period is 12 to 60 months depending on the leased asset. Applicants may benefit from a 6-month grace period during the first year and 3-month grace period in the following years.
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.