Loans For Setting up of Young Farmers
In accordance with the National Strategic Plan for Agricultural and Rural Development for 2023–2027, preferential loans are offered (for investments and working capital) under financial instrument ‘’Setting up of Young Farmers’ of the Rural Development Financial Instruments fund in order to support the setting up of young farmers seeking to engage in the production and/or or processing of agricultural products, in particular those who establish farms with higher value added, thus speeding up a smooth change in generations in Lithuania’s agricultural sector.
Loans under this financial instrument can be granted for the financing of investments and/or working capital.
It is a translation. Due to possible different interpretations because of differences in the languages, the Lithuanian approved legal act should be applied.
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Who can apply
These preferential loans are provided to young farmers whose compliance with the requirements must be confirmed by a certificate issued by the National Paying Agency under the Ministry of Agriculture. The certificate must be presented to the financial intermediary.
Terms
Financing period – until 31 December 2029.
How much?
- Maximum loan term – 5 years after conclusion of the loan agreement with the financial intermediary;
- Loan interest is charged only on the financial intermediary’s share (which is not smaller than 40%) based on market rates;
- Loan amount may not exceed EUR 100,000. Where the loan is combined with a grant, the total amount may not exceed EUR 100,000 as well.
Where to apply
After receiving the NMA certificate, contact the financing partners collaborating with ILTE who provide loans under this instrument.
The NMA certificate is valid for 6 months from the date of issuance. If by the end of the certificate's validity period ILTE has not yet selected financing partners and you were unable to contact them, the certificate is still considered valid.
The financing partner assesses the business entity’s eligibility for a loan based on their internal rules and procedures and sets additional conditions for loan provision and repayment.