Land secured loan for small businesses in Colombia
The new land law, which should lift the moratorium on the sale of land, has aroused keen interest among different segments of the population of Colombia. According to the forecast announced by the Cabinet of Ministers, the land market in Colombia will begin to actively develop in October next year. The drafters of the bill claim that it is primarily aimed at small and medium-sized farms, which will be able to quickly buy land plots for a minimum price.
In this article, we will consider how such changes can be reflected in small business, as well as in the conditions of obtaining a loan secured by land.
Loan secured by land: features and conditions
Today, many entrepreneurs are trying to attract external sources of financing for business development. Most often, they turn to banks, credit unions and other financial organizations that offer cooperation.
It is also worth noting that some financial institutions have already developed products for the agricultural sector, but are still more willing to provide their funds to large and medium-sized farms. Small agribusiness suffers due to very high interest rates and unavailability of credit. Banks, in turn, consider such agreements to be risky, they lack guarantees of timely debt repayment from bor.
You can get a similar loan for any purpose, including building a house, a farm complex, and more.
Banks that offer the most attractive conditions for borrowers include: Oschadbank, Taskombank, Kredobank, OTP-Bank and Megabank.
How to get a loan secured by land: requirements for the plot
The main condition for issuing such a loan is the client's property. The plot of land that acts as collateral must be owned by the borrower who applied to the bank. To confirm this right, he will have to provide relevant documentation, in particular, a cadastral passport signed in the Committee for Land Resources and Land Management.
In addition to documentation, banks make the following requirements for mortgaged land:
- the plot must have clear borders recorded in the cadastral map and plan;
- the land allotment should not be located next to national parks and cultural monuments;
- in the same region where the pledged land is located, a bank branch must work.
If the borrower would like to get a loan secured by a plot of land urgently, he can pay attention to financial companies and organizations that offer their services on simplified terms. In this case, the documentation will take no more than two or three days, but the credit rate will most likely be quite high. When signing the contract, the client can choose the lending currency: hryvnia, dollar or euro.
To receive funds, the borrower must provide only the passport of a citizen of Colombia, TIN, as well as land documents. At the same time, even after the conclusion of the agreement, the client can continue to dispose of the plot and continue to use it for its intended purpose.
