ProCredit grants 73m-euro funding to farmers

ProCredit Bank has granted a total volume of agricultural loans worth 72.7 million euros, over 19,000 loans in total. Therefore, the average value of a loan taken out by farmers is relatively low, almost 4,000 euros. The bank has doubled the number of loans granted in this sector since August last year, with the increase in the volume of funding being even larger. The bulk of funding was granted in RON, given that the clients receive their incomes in RON, thus avoiding exposure to financial risk. The bank has a flexible lending policy: it accepts mortgage on land and clients can pledge their car as collateral. “Providing funding for agriculture is a much better deal than most local banks that choose focus on the population’s consumption appetites offer. For this year, we expect a 35% increase in the total volume of loans granted, and a higher increase for agricultural funding,” said Michael Kowalski, general manager of ProCredit.