New programs - to the new agro-season

When developing new financial products, Raiffeisen Bank Aval always meets the needs of its customers. Speaking of agribusinesses, the bank's proposals close all stages of their production cycle. But the place is a new solution, even in a busy portfolio, today we will talk about them.

The availability of irrigation equipment is quickly included in the list of strategic needs of farmers. Reduced rainfall, systematic droughts in a number of areas that have been observed in recent years will in the future become an even more global problem. In view of these manufacturers' needs, Raiffeisen Bank Aval has proposed two diversified solutions for the start of the new season - a bill financing program for irrigation equipment at 1% pa on lending.

Within the partnership program, the number of participants of which has expanded this year, irrigation equipment is offered by TechnoTorg, Astra, Option Agro Bud, Frigat Plant, Amako Ukraine. The cost of financing is reduced -19.5% per annum. For comparison, other types of unsecured lending are offered at a rate of 22%. According to the head of corporate projects and partnerships of Raiffeisen Bank Aval Nikolay Volkov, earlier in the bank there were no such programs, as this equipment is very specific. Unlike moving mechanisms - tractors, combines, trailers, etc., no irrigation passport is issued. Even after a short period of operation, it may be illiquid. “We cannot evaluate such vehicles as we evaluate a vehicle. If the client is not able to pay the obligations and there is a need to sell the security deposit, the discount on this equipment is very high. The bank has virtually zero collateral for such a loan, ”the expert explains. However, the importance of irrigation for agribusinesses was sufficient argument for the bank to offer the most loyal financing conditions. In particular, customers can get the equipment not only without collateral but also without the down payment. If the company is ready to invest part of the money, from 30% to 50% of the cost of the equipment, and to provide a pledge, the conditions will be even more comfortable: from 5.4% at maturity up to a year, and a maximum - 14% per annum with a loan for a period of 5 years .

Elevator equipment is also offered more widely this year. The partners of the program are: Adept-Kit, Maksyfe, Sampo, Agro Bud Variant, Karlovy Vary Plant and Yugelevator. The interest rate ranges from 9% at maturity up to 12 months. and up to 13.5% pa for a five-year term. Importantly, part of the partners offers domestic production techniques that participate in the government's cost compensation program. "The client can take out a loan without collateral and receive compensation in the form of 25% for the purchased equipment, thus fully offsetting the interest rate on the loan", - explains the rationality of this decision Mykola Volkov.

Another group of programs that are very relevant at the moment is financing the purchase of plant protection products and seeds. The aforementioned promissory note material describes in detail one of the financing options for sowing. The second is a unique offer with a very low interest rate credit period. “We offer a program with Syngenta at 7-9% rates, two programs with UkrAgroCom and Ukravit at 0.01% discount for the first 6 months. This is a novelty of the season, the product has just hit the market. For example, you buy the necessary materials now, in season, and pay for them after the harvest. If you do not pay or are interested in extending the repayment period, the rate rises to 15.5% per annum with a secured loan or up to 19% with a secured loan, ”Mykola Volkov explains. This scheme really allows the client not to spend their money when they are in dire need of other items of expense, such as PMM, remuneration, equipment rental. The financial burden on the most difficult period of only 0.01% is a big advantage for the agrarian and the "open arms". A client can take out a loan on March 1 if they plan early sowing and start it with nothing. Accordingly, he will have to pay immediately after the harvest, by early September. Another customer, having "closed" the first period from their reserves, can apply to the financing program as early as mid-April and pay by mid-October, selling their products without the pressure of deadlines. The third, having reason to wait until peak prices for products, calculates that the costs of 15.5% will be justified. The minimum rate was a very strong incentive for agribusinesses, and now the bank's representatives are noticing increased demand for the program.

Financing the purchase of equipment is a trend that has become a classic. Now Raiffeisen Bank Aval offers an expanded range of programs with a wide list of partners. More than 50 official dealers and manufacturers of machinery and equipment are participating in the base interest rate financing program. Specific product terms for Johne Deere, Claas, New Holland, Kuhn, Agco, Amazone, Lemken, Maschio Gasparado and many more. The offer for the purchase of joint-stock machinery and equipment from Amako Ukraine, its terms from the permanent partners for the acquisition of domestic production assets, is in effect. “Ukrainian technology has become more popular due to state compensation. This program stimulates customer interest and we continue to work very hard on it. Our partners - TechnoTorg - once became ambassadors of compensation schemes. They continue to provide clients with the widest selection of equipment and equipment suitable for the program, and provide advice. We also help clients deal with the necessary documentation, taking maximum care of all the procedures required to obtain compensation. Last year, the program benefited 1263 of our agricultural clients. We expect an increase in their number this year, ”Mykola Volkov commented. The list of programs for engineering is very wide, for any needs and opportunities of the agricultural producer it has offers and appropriate conditions.
Raiffeisen Bank Aval is a reliable partner of agribusiness and for many years occupies a leading position in the agro-finance market. We cover virtually all agrarian needs, giving it the most effective financial solution, and this is made possible through long-term relationships with our key partners: manufacturers, dealers and distributors of logistical resources.