Compensation of Interest on Loans and Leasing Services for Financing of Investments
Partial reimbursement of interest on loans taken out from financial institutions with ILTE guarantee. The reimbursement is granted for loans to finance investments and/or for leasing assets from leasing companies for the primary production, processing and/or marketing of agricultural products.
It is a translation. Due to possible different interpretations because of differences in the languages, the Lithuanian approved legal act should be applied.
Who can apply?
You can apply for interest compensation by:
- a natural or legal person engaged in an economic and/or commercial activity in a rural area (hereinafter referred to as a rural operator);
- agricultural cooperative societies (cooperatives).
Farm entities must have registered their agricultural holding in the Register of Agriculture and Rural Business of the Republic of Lithuania in accordance with the procedure laid down by legislation.
Which forms of financing are covered?
Interest paid under only one investment loan or financial lease/leasing contract from 1 July 2021 onwards is reimbursed.
Amount and duration
80 % of the interest paid to the financial institution or leasing company.
Interest is reimbursed for a maximum period of 3 years from the date of signature of the loan or leasing contract (in the case of a new contract), or for a maximum period of 3 years from the date of amendment of the contract, in the case of an amendment of an existing contract.
The maximum annual interest rate on which the compensation is calculated is 4%. Part of the interest reimbursement is limited to the amount of interest paid. If the loan/lease agreement is extended, the partial interest reimbursement period is not extended. Interest and late payment interest charged by the credit institution or leasing company on overdue loans/leases is not reimbursed.
Maximum reimbursement amount:
- EUR 30 000 for entities investing in primary agricultural production (excluding livestock farming) and/or other activities;
- EUR 50 000 for entities investing in primary agricultural production in the livestock sector;
- EUR 300 000 for agricultural cooperatives (cooperatives) which maintain recognition throughout the interest compensation period, investing in at least one of the activities and fulfilling the conditions specified, i.e. processing of agricultural products, where the processing of the agricultural product also produces an agricultural product or a non-agricultural product, or marketing of agricultural products, where the agricultural cooperative invests in the livestock sector, dairy sector, and the fruit, fruit and vegetables sector and/or vegetables.
The total intensity of investment aid (including aid granted under the rules and any other aid) may not exceed the intensity referred to in point 20 of the Rules.
Where to apply?
Please contact one of the ILTE funding partners with whom you have signed a funding agreement.
You do not need to contact ILTE - our funding partner does.