“Upgrade the technopark.” Special offer for farmers
An event on the market was a special offer for farmers from Raiffeisen Bank Aval - an unsecured investment loan without a down payment for the purchase of machinery and equipment from a dealer - the Technotorg group of companies. Thanks to the new financing program, updating the technopark for the season will become as accessible as possible for most agricultural producers.
Farmers - this is almost 10% of all clients of business banking Raiffeisen Bank Aval and 70% of the loan portfolio of business banking. Obviously, this is the result of thoughtful and relevant programs for the development of the agricultural business. “Our mission is to create interesting and profitable products to help customers develop their business,” says Yulia Nizhnikova, Head of Development and Implementation of Credit Products and Processes, Business Banking Division.
- There are many cases in which Raiffeisen Bank Aval began cooperation with an agricultural enterprise in 2004-2005, when it was a small farm, and ten years later it became a large company that could rent and cultivate several thousand hectares of land. Last but not least this was due to the financial support that we offered them in a timely manner. A new offer from the Bank is from this category of “business stimulants”.
Raiffeisen Bank Aval has been working with the Technotorg group of companies, the leader in the sale of agricultural machinery in the Ukrainian market, for many years. The effectiveness of this partnership is measured by thousands of transactions involving Bank financing. From now on, the Bank additionally offers agrarians who have a net annual income of up to UAH 89.2 million unsecured loans under special conditions: without requiring a down payment and a one-time commission. In addition, special rates have been developed directly for Technotorg customers, which are significantly lower than standard rates for unsecured lending. With financing of 100% of the cost of technology, this is 22% per annum.
“This program provides an opportunity for small agricultural enterprises, farmers, who were stopped by the lack of available funds, to renew their technology park. Now you don’t need to accumulate money for the down payment, for a one-time commission, for registration of a pledge. There is no cost of insurance of collateral property - and this is a tangible saving, because its size can reach 1% of the cost of purchased machinery or equipment. With unsecured lending, we also save quite a lot of time for the client to collect documents for processing collateral, which reduces the time for obtaining loan funds. In the shortest possible time, the technique becomes the property of the agrarian and he can immediately start using it in his farm, ”Yulia Nizhnikova explains the advantages of the new proposal.
Limitations on the maximum loan amount - up to UAH 3 million for the purchase of one unit, while the minimum amount of financing is not less than UAH 100,000. The loan term is from 24 to 36 months with no early repayment restrictions and no additional fees. If necessary, the client can take several units of machinery or equipment, in this matter the restrictions are only the financial capabilities of the borrower in servicing loans. You can buy under the program any kind of self-propelled or non-self-propelled equipment.
There are no special requirements for borrowers, these are standard criteria that are set by the Bank for all agro-customers, for example, the minimum business period is at least two years. If an enterprise is part of a group of companies that works more than this period, but it is less, such a client will also receive financing. However, decisions can be made individually.
One more fact can be called cherry on this credit cake. The new agricultural program is correlated with the state program for compensating the cost of agricultural machinery. By purchasing domestic machinery and equipment in the Technotorg network, companies may receive additional compensation from the state. Financial support is considerable, it is 25% for all agricultural companies and 15% for farmers according to the Decisions of the Cabinet of Ministers of Ukraine. At the same time, some farms, if they meet the criteria, can receive even both compensations for the year.
Such a sum of advantages really compares favorably with the offer of Raiffeisen Bank Aval from similar ones in the market. At the moment, other financial institutions do not offer unsecured lending programs for agricultural machinery, only to replenish working capital. Mortgage programs, which Raiffeisen Bank Aval also offers, can be called classic for the market.
By the way, if the client does not fit the range of Technotorg, he can also get an unsecured loan for investment purposes. But the cost of the product will be 24-28% per annum, and a one-time commission of 0.5-0.99%. This is a significant difference, the decision depends on the needs and requirements of a particular enterprise.
“We understand that for Ukraine, the agricultural sector is the main segment of production. If the Bank supports agribusiness, leading it to growth, we will generally raise the country's economy. And this is one of the main motivations why Raiffeisen Bank Aval introduces such products, ”summarizes Yulia Nizhnikova.
