Loans, ProAgro Loans

ProAgro loans are designed for agricultural producers, enterprises and co-operatives.

What can ProAgro loans be used for?
ProAgro loans can be used to finance all types of agricultural inputs and resources and many kinds of projects:

• purchase of seeds, fertilisers, fuel
• purchase of cows, calves, pigs
• purchase of tractors, harvesters
• installation of irrigation systems
• purchase of agricultural land
• construction of stables, silos, storage facilities
• planting of orchards and vineyards

You can also use ProAgro loans to refinance agricultural loans disbursed by other banks.

What types of loans are available?

• Loans for the purchase of seed and planting material
• Loans for the purchase of machinery and equipment
• Loans for the purchase of land
• Loans for purchasing, building and renovating agricultural facilities
• Energy efficiency loans
• Loans for refinancing short-term loans disbursed by the Ministry of Agriculture

Loans for the purchase of seed and planting material

These loans are designed to help farmers get ready for the planting season by providing quick and efficient financing for the purchase of the necessary seed and planting material.

Short-term loans for planting season needs and the purchase of seed and planting material can be RSD-denominated or indexed in EUR. If all conditions are met, they are approved within three days. The repayment schedule can be adjusted to reflect the seasonal nature of agricultural production and income, with a grace period of up to 10 months.

ProCredit Bank has co-operation agreements with numerous well-known producers of cattle feed, seedlings and planting material. With an invoice from the supplier, you can obtain even more favourable terms and conditions.

Short-term RSD-denominated loans for the planting season

The loans have maturities of 3, 6, 9 or 12 months. The minimum loan amount is RSD 300,000, and the effective interest rate starts at 5%.

Loans for the purchase of machinery and equipment

ProCredit Bank offers long-term loans for the purchase of machinery and equipment with an effective interest rate of 4.52% and long-term loans for the purchase of domestically manufactured tractors with an effective interest rate of 4.8%.

ProCredit Bank also has co-operation agreements with well-known suppliers of agricultural machinery and equipment. With a ProAgro loan and an invoice from one of the suppliers we work with, you can purchase tractors, harvesters, watering systems, auxiliary machines and other machinery at even more favourable terms and conditions.

Loans for the purchase of land

Loans for the purchase of land are long-term loans indexed in EUR with a maturity of up to 20 years and the possibility of a one-year grace period. The minimum loan amount is EUR 3,000.

Loans for purchasing, building and renovating agricultural production facilities

Loans for purchasing, building and renovating agricultural production facilitiesare long-term EUR-indexed loans with a maturity of up to 15 years. The minimum loan amount is EUR 10,000. There is a possibility of a one-year grace period.

Energy efficiency loans

These loans can be used to financeall types of renovation work carried out on housing units with the aim of achieving better energy efficiency and decreasing household expenses (such as installation of internal and external insulation, connection to a gas network, installation of heaters and heating systems, and similar kinds of alterations).

Dedicated account – Once you have completed the quick and simple procedure of opening a new account for your business at ProCredit Bank, or transferring an existing one, you will be eligible for additional advantages in connection with your loan application.

For loans that are not supported by a supplier’s invoice, a contract with a construction firm or a purchase contract, the maximum maturity is 36 months. The maturity for loans supported by such documentation depends on the type of loan and ranges from 84 months in the case of purchase of machinery to up to 180 months for the construction of agricultural buildings and facilities.

When is collateral necessary, and what types of collateral do we accept?

For loans in amounts up to EUR 10,000:

• no collateral or guarantor required for maturities up to 24 months
• collateral and guarantor required for maturities over 24 months

For loan amounts between EUR 10,000 and EUR 25,000, a creditworthy guarantor or collateral is required.

For loan amounts over EUR 25,000, a creditworthy guarantor and/or collateral is required. Agricultural land, machinery, or private property of the borrower can serve as collateral.

For a ProAgro “Imanje” loan, a mortgage is necessary. No deposit or down payment is required.

The bank reserves the right to require additional collateral in cases where it is deemed necessary.

Typical ProAgro loan repayment schedules for EUR-indexed loans:

Typical repayment schedules for ProAgro loans for the purchase of land:

The loan application process is simple and efficient. You can apply for a ProAgro loan at any branch of ProCredit Bank; just be sure to bring your ID card with you.

A ProCredit loan officer will then visit you to gain an overview of your production facilities and your business operations. If all conditions are met, the loan will be approved and disbursed to you.

ProAgro loans are paid off in equal monthly instalments. They feature an option, however, of adjusting the repayment schedule to reflect the seasonal nature of agricultural income, meaning that you pay larger instalments in the months when you receive more income and smaller instalments in the months in which you earn less.

Additional information about ProAgro loans is available at all branches of ProCredit Bank or at our Info Centre.

The effective interest rate for EUR-indexed agricultural loans starts at 11.87%. The effective interest rate depends on the nominal interest rate, loan maturity, collateral provided, and the borrower’s creditworthiness and whether he/she has previously worked with the bank.