Milk Producer Loan

Purpose

The Product “Milk Producer” is meant for individuals and legal entities – farmers, managing farms for raising livestock (cows) and buffalo, complying with the following conditions:

  • The farm of the loan applicant for raising livestock and buffalo was registered by the procedures of the Art.51 of the Law on the veterinary medical activity
  • The farm of the loan applicant is entered in the Public Register of the Ministry of Agriculture and Foods in first or second group
  • The loan applicant has an individual milk quota for supplies and/or direct sales, allocated by the Minister of agriculture and foods
  • The loan applicant has an individual milk quota for supplies and /or direct sales, distributed by the Minister of agriculture and foods
  • The loan applicant has a good credit reputation
  • The loan applicant does not have executable public liabilities

Loan purpose

Financing the operational funds for the purchase of fodder, fodder additives, veterinary medical products /vaccines, drugs/, preparations for hygiene and disinfection, expenses for veterinary control /supervision/, as well as for the purchase of fuels, mineral fertilizers, preparations  for plant protection, fuel lubricants, spare parts for agricultural machines, expenses for repair and maintenance of machines, etc short-term tangible assets /work outfits, sanitation outfits, etc./.

Parameters

  • Loan amount – from BGN 10 000 to BGN 300 000
  • Repayment term
    - up to 36 months for farms, entered in the Public register of the Minister of agriculture and foods in first group;
    - till 31.12.2009 for companies, entered in the Public register of the Ministry of agriculture and foods in the second group, with a possibility for renewal up to 36 months /general term/ after transferring the farm to the first group;
  • Currency – BGN and EUR
  • Interest conditions – subject to agreement
  • Loan type – overdraft
  • Collateral
    All the allowed collateral according to the Rules on the credit activity of CCB Plc:
    - At the discretion of the Bank, besides the provided tangible collateral, it is possible to require “Financial risk” insurance at “Armeec” insurance company JSC.
    - Upon the provision of a guarantee or surety associated with the loan in favour of the Bank by the State Agricultural Fund, CCB Plc accepts as collateral:
    - guarantee or surety provided by the State Agricultural Fund to the amount of 75 % of the loan principal
  • Way of repayment of the principal – decreasing limits in the last 10 months of the loan period
  • Interest payments – every month
  • Fees and Commissions – according to the Tariff on the interest rates, fees and commission of CCB Plc, with the exception of the interest for delay, which is the negotiated amount plus 10 points margin.

Collateral insurance

  • The established collateral is insured in favour of CCB Plc for all risks, accepted in the commercial practice. The insurance policy is at the expense of the borrower.
  • The “Financial risk” insurance policy at “Armeec” insurance company JSC is at the expense of the borrower.

Necessary documents

According to the Rules on the credit activity of the Bank, the following documents are additionally provided:

  • The registration card of the farmer, certified by Regional Directorate “Agriculture and forests” for a term till March 25 of the following year by the procedures of Ordinance № 3/29.01.1999 for the establishment and maintenance of a Register of the farmers;
  • Registration card of a milk producer, issued by Regional Directorate “Agriculture and Forests” by the procedures of Art. 6, para. 1 of Ordinance №6/07.06.2005 for monitoring the produced and realized quantities of cow milk and milk products, made of cow milk.
  • Certificate of the registration of a farm for breeding livestock and buffalos under Art. 51 of the Law on veterinary medical activity.
  • Statement /recapitulation/ of the Diary of the producer of cow milk for the previous year and as at the last date.
  • A protocol with a conclusion of the Commission of the Regional Veterinary Medical Office for ascertaining the compliance of the farm with the requirements to buildings and ascertained values of the indicators for raw cow milk – total number of micro organisms and total number of somatic cells.
  • Certificate for the allocation of an individual monthly quota for deliveries and/or direct sales.
  • Contract for the purchase of cow and /or buffalo milk with corporate clients of the bank /in the cases, when the loan is provided to a supplier of those clients/.
  • Contract for the delivery of cow milk with a purchaser of cow milk, approved by the Ministry of Agriculture and Foods.

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