Agribusiness loan based on eligibility for subsidies

Agribusiness loan based on eligibility for subsidies

Do not miss out on this opportunity. Take an agribusiness loan based on eligibility for subsidies because that is the easiest way of bridging the period from applying for a subsidy and actually receiving one.

Lending terms and conditions

Borrowers

  • Family farms, small businesses or companies dealing with some kind of agribusiness, and agriculture subsidy beneficiaries. Before applying for a loan the following conditions must be met:
    • Regular transaction account in OTP banka
    • All regulatory preconditions for eligibility for the subsidy
    • Submitted single application form for subsidy in the current year (filled in the soft copy via AGRONET, signed and delivered to the Rural Payments Agency)
    • The beneficiary has benefited from the national subsidy schemes before

Loan purpose

  • The loan is used for maintaining of current liquidity, and the entire amount is paid to the borrower's transaction account.

Loan amount

  • Loan cap is set in accordance with the agribusiness subsidies paid out for the previous year, and based on the submitted application for subsidy for the current year.

Fee

  • Holders of the Agribusiness Package are entitled to a 50% discount on the front-end fee, and otherwise the fee equals 1% of the granted amount.

Repayment deadline

  • Maximum repayment term is 18 months. The loan falls due in bullet payment, whilst the interest falls due quarterly and is collected via standing order set up on the transaction account to which the subsidy is credited. It is up to the borrower whether the entire subsidy amount will be used for settlement of the liabilities under the loan, or whether the entire debt will be settled from own funds before the maturity date.

Security instruments

  • If the borrower is credit worthy, the loans up to EUR 30,000 can be granted against negotiable security instruments (bills of exchange and debit notes). Larger amounts, however, call for special arrangements.

Take advantage of our OTP Agribusiness Package

Holders of the OTP Agribusiness Package get 50% off front-end fee.  With this package, we do not charge the LCY account management fee, and offer you a number of products and services at favourable rates.