Loans secured by a plot of land – a fairly popular type of loan today. In this case, the land acts as a guarantee for the borrower to repay the money taken on credit. This can be not only an agricultural share, but also a plot for residential construction.
A loan secured by land is a highly demanded service in modern Ukraine. The fact is that many residents of the country are not able to confirm the level of their income with documents. Therefore, banks are reluctant to provide loans to such customers. But taking a loan secured by land is the easiest and most reliable way for people who have property and stable income, but who do not have the opportunity to confirm their income to the bank.
You can get a loan secured by land only if the potential borrower is the owner of these hectares. To do this, he must submit to the creditor documents (in particular, a cadastral passport), which will confirm the ownership of a particular land.
It is worth noting that a loan for a plot of land is also a very convenient type of loan. The fact is that obtaining such a loan in no way limits the borrower in the use of his land. He can calmly grow wheat on this land or build a house on this site. Here, however, it is worth noting one important nuance: if for some reason the borrower cannot pay the lender, then he can lose not only his land share, but also all the buildings within it.
A land loan is issued on the following conditions:
the borrower must have all the necessary documents confirming the ownership of the land;
the land share must have clear and approved boundaries in the cadastral map;
the site should not be located within the national park, reserve or other nature protection zones.
In general, the list of conditions largely depends on the policy of a particular credit or banking institution that provides such services. When signing a loan agreement, the client usually gets the opportunity to choose the loan currency (this can be hryvnia, euro, dollar, etc.).
Credit Union “ZaRaZ”: the benefits and advantages of working with us
Credit Union “ZARAZ” offers its potential customers to take a loan under the ground on favorable terms. Our company has been operating in the market for five years, and always tries to take into account the interests of borrowers as much as possible. To obtain a loan you will need a very short list of documents: the client’s passport, as well as a document confirming the ownership of the land. The institution also has the right to ask the borrower about the purposes of this loan and personal income.
An important advantage of cooperation with the COP “ZaRaZ” is the lack of a service fee. Loans are issued very quickly and for long periods.