Special agricultural loans

Public warehouse lending related to intervention purchases

You can borrow from OTP Bank against products stored in public warehouses, which enables you to wait until you receive money from intervention purchases. Any product in connection with which the European Union invites intervention purchases shall be considered as eligible.

How does it benefit your company?

  • Public warehouse loans related to intervention have all the benefits of traditional public warehouse loans.
  • The intervention loan enables you to sell at a pre-set price and can have access to most of your proceeds immediately.
  • Repayment and interest payment is due upon maturity. The term of intervention financing adjusts to the date of purchase.
  • The intervention loan enables you can remain solvent during the intervention as well.

Terms and conditions

  • Term: short term
  • Interest: set on a case basis
  • Fees: no handling, commitment or loan appraisal fees

Loans secured on warehouse bond

You can borrow from OTP Bank against products stored in public warehouses, which enables you to seize the best sales opportunity. All commodities traded at the Budapest Commodity Exchange loan are eligible collateral for the loan. For special untraded warehouse products, ask for our special offer.

How does it benefit your company?

  • You need not sell your crops immediately after they have been harvested often at subdued prices; you can sit back and wait until prices go up.
  • With a warehouse bond you can take out a loan within the framework a simplified procedure.
  • You need not post additional collateral.
  • Warehouse bonds as collateral can secure low-cost financing.

Terms and conditions

  • Term: short term
  • Interest: set on a case basis
  • Fees: no handling, commitment or loan appraisal fees

Agricultural Development Programme

The credit line available in the Credit Programme is HUF 30 billion

Objective of the Credit Programme

Financing, through providing long-term funds, of the agricultural capital investments (including technical upgrading) of Hungarian-based SMEs focussing on competitiveness and quality production, involved in agricultural production, the provision of services related to such production, the processing of self-produced goods and the launch of the agricultural operations by young agricultural business persons.

Type of loan: capital investment loan with an over 1 year’s maturity

The following sub-programmes are available within the framework
of the Credit Programme

  • Agricultural capital investment loan
  • Agricultural processing industry loan
  • Loan for young agricultural business persons

Loan purpose

Financing capital investments aimed at the storage of agricultural produce and agricultural production. The capital project must have at least one of the goals below:

  • improved production efficiency and restructuring of production,
  • quality improvement,
  • protection and improvement of the quality of the environment,
  • reduction in the cost of production,
  • improved hygiene, protecting and improving animal welfare,
  • promoting the diversification of agricultural activities.

The loan can be used to finance

  • construction, purchase, upgrading and renovation of real estate linked to agricultural activities,
  • purchase of new machinery, equipment and fittings,
  • capital investment-linked costs that can be capitalised up to 12% of the net capital investment costs,
  • afollowing the approval of the competent authority of the European Union, the capital investments for which AVOP (Agricultural and Rural Development Programme) or NVT (National Rural Development Plan) support will be used can also be financed.

Activities that are not eligible for financing within the framework
of the Credit Programme

  • capital investments listed in the annex to the information brochure,
  • the processing of the agricultural products listed Annex 1 of the Treaty into products not listed in Annex 1,
  • capital investments of which the costs and the subsidy content exceed EUR 12.5 million and EUR 6 million respectively,
  • the manufacture or distribution of products imitating or replacing milk or dairy produce
  • processing and distribution activity in sugar refinery,
  • purchase of breeding stock except for the first instance,
  • export-related activity and the establishment and operation of the related sales networks,
  • prioritising domestic products over imported goods,
  • capital investments that would be implemented even under market conditions,
  • advertising,
  • current asset acquisition,
  • capital investment in progress,
  • loan repayment with another loan,
  • construction, purchase, upgrading and renovation of residential property,
  • Purchase of passenger cars and trucks.

Eligible applicants

SMEs under the currently effective statutory regulations (currently Act XXXIV of 2004)

  • which are involved in the production, the processing and the sale of the agricultural products listed Annex 1 of the Treaty into products not listed in Annex 1
  • which have been registered under Government Decree no. 141/2003. (IX. 9.).

Securities: as per the internal regulations of the financing banks

Enterprises not eligible for financing

  • business entities under bankruptcy, liquidation, insolvency or court ruling-based foreclosure proceeding,
  • business entities which, within three years prior to the submission of their loan application, failed to meet or only partially met any one of their obligations undertaken in a subsidy contract in connection with some state subsidy granted by the sub-systems of the central budget,
  • business entities that have tax liabilities, or public debts enforceable by way of taxes, that have been overdue for more than sixty days, with the exception of cases when these companies have been granted permission for deferred payment or payment by instalments
  • business entities – with the exception of sole traders – which have not been registered by the company court,
  • In addition to the excluded business entities stipulated among the general conditions, those businesses that do not have at least one closed business years.

Content of the grant

Because of the subsidised interest, the Credit Programme is to be treated as a state subsidy.

The intensity of all the support used for one single project, falling under Article 87 (1) of the Treaty founding the European Community and originating from any general government or community fund, cannot exceed the rate under special conditions.

In calculating intensity, all support for the project must be taken into account.

Under the Credit Programme loans may be granted in accordance with Commission Regulation 1/2004/EC on the application of Articles 87 and 88 of the EC Treaty to state aid granted to SMEs active in agricultural production.

Certification of aid: a certification of aid on the content of the aid granted to the beneficiary is provided by MFB Rt.

Procedures for the submission of loan application

Loan applications must be submitted directly to the credit institutions directly participating in the Programme.

Loan applications for over HUF 50 million may be submitted directly to MFB Rt.
Credit institutions accept loan applications only if the agricultural agency endorsed them.

Contract conclusion deadline: under the programme loan contract may be concluded unit 30 June 2007.

Other conditions

Credit institutions accept credit applications after the agricultural agency with territorial competence over the location of the capital project has endorsed them. Agricultural agencies file the loan applications, validate their compliance with loan purposes and certify that the business entity in question meets the following criteria stipulated in Commission regulation 1/2004/EK:

  • Its economic viability can be proven.
  • It meets the requirement for environment protection, hygiene and animal welfare.
  • The business entity has the necessary expertise and skills.
  • The customary sales opportunities of the given product will persist.
  • The planned capital project is not included in the capital projects that cannot be financed and that are listed in the annex to the information brochure.

Terms and conditions

  • Loan amount: from HUF 5 million to at most HUF 400 million, in the case of production associations and integrators, at most HUF 750 million
  • Amount of own funds: 20% of the net costs (i.e. net of VAT) of the capital investment. No subsidy from any other sub-system of the central budget or EU funds can be treated as own funds.
  • Currency of financing: HUF
  • Interest: 3-month EURIBOR + at most 4% p.a.
  • Frequency of interest payment: calendar quarterly
  • Commitment fee: 0.25% p.a.
  • Commitment period: at most 1.5 years from the date of contract conclusion
  • Handling fee: Not charged.
  • Term: at most 15 years from the date of contract conclusion
  • Grace period: at most 2 years from the date of contract conclusion
  • Pre-payment: allowed, no pre-payment fee is charged
  • Principal repayment: after the grace period in equal quarterly or half-yearly instalments

Landed estate development loan

MARD (Ministry of Agriculture and Rural Development) Decree no. 95/2005.(X.25.) subsidises interest on land purchase for the purpose of landed estate development. In this case the financier must be a mortgage bank, commercial banks can only get involved via mortgage lending institutions

OTP Jelzálogbank (Mortgage Bank) and OTP Bank have developed their own version of landed estate development loan, which it sells via the OTP branches.

  • Real estate accepted by OTP Jelzálogbank may serve as collateral.
  • Residential property is accepted as collateral at the acceptance value specified for home loans, i.e. at 45% to 90% of the loan/loan-to-value depending on the category of the settlement in question.
  • The proportion of lending is, in the case of arable as collateral, 90% of the LTV.
  • 100% of the purchase price of the arable can be loaned from the landed estate loan if satisfactory loan collateral is offered.


  • Loan application: Simplified loan application. No business plan is required.
  • Loan amount: at least HUF 1 million at most HUF 50 million per applicant
  • Term: minimum 5 years maximum 20 years
  • Grace period: maximum 2 years
  • Principal repayment: quarterly/half-yearly/annually, adjusted to the client’s expected sales revenues
  • Interest payment: calendar quarterly
  • Interest: cannot be higher that the average yield, published by the Hungarian State Debt Management Centre Rt., on 5- and 10-year government bonds prevailing at the date of the contract conclusion plus 1.75% The interest rate cannot be changed for 5 or 10 years (at the borrower’s discretion).
  • Interest subsidy: 50% of the interest payable
  • Re-claiming of interest subsidy: The client pays the full amount due to the Bank and, based on the certificate of interest payment issued by the Bank, he may apply for interest subsidy from the Tax Authority every calendar quarter.
  • Handling fee: 1.0% p.a.
  • Collateral appraisal fee: varies according to the size and the type (type of cultivation) of the area; Minimum fee: HUF 25,000 + VAT
  • Creditline-setting fee: HUF 30,000, irrespective of the loan amount
  • Loan appraisal fee: None

Special bank guarantee - Eximhitel guaranteed by OTP Bank

"Eximhitel" guaranteed by OTP Bank

Secured on OTP Bank’s assumption of bank guarantee, an export pre-financing loan is granted – within the framework of a simplified procedure – by EXIMBANK Zrt. to business entities. The Ministry of Economy and Transport provides interest subsidy and guarantee fee support for the loan and the bank guarantee respectively.

Eligible applicants

Domestic incorporated entities with

  • the balance sheet total not exceeding HUF 2,700 million,
  • the headcount not exceeding 250 persons (depending on the nature of the business activity, departure from this is allowed in justified cases),
  • net sales revenue not exceeding HUF 6,000 million,
  • the financial data of its majority owner (holding over 50% of the company’s shares) complying with the above restrictions,

and which

  • has a valid export contract,
  • applies for a loan to finance exclusively the production of goods with a certificate of Hungarian origin and the related services provision,
  • provides evidence that it has no outstanding public dues, is not under bankruptcy, insolvency or liquidation  and that it has met its obligations under the contract with the sub-systems of the central budget.

Restrictions on use

  • The client is entitled to interest subsidy and guarantee fee support for 6 months.
  • The client may apply for Exim loan once a calendar year.

Characteristics of the bank guarantee

  • Expiry date of guarantee: 10th working day following the expiry date of the "Exim loan"
  • Guarantee fee: max. 3 % p.a.
  • Amount of bank guarantee: HUF 10 - 200 million

How to apply?

  1. The client submits his request for the loan to the commercial bank that provides the guarantee.
  2. Eximbank undertakes that if the loan application of the client keeping his account with OTP Bank is backed by OTP Bank’s bank guarantee, it disburses the loan under more favourable conditions.
  3. Eximbank decides on the approval or otherwise of the loan and the interest subsidy within 5 working days from receipt of the loan application (form) stipulated by it.

Terms and conditions offered by Eximbank

  • Subsidised loan amount: forint or foreign currency amount corresponding 75% of the sale and purchase contract,
    but min. HUF 10 million and max. HUF 200 million or its equivalent in foreign currency
  • Foreign currencies of the loan: USD and EUR
  • Interest rate:
 Below HUF 100 millionOver HUF 100 million
In the case of a FOREXFOREX loan6-month USD or EUR LIBOR + 1.2% p.a.6-month USD or EUR LIBOR + 1% p.a.
In the case of a HUF loan6-month BUBOR + 1.2% p.a.6-month BUBOR + 1% p.a.
  • Term of loan: adjusted to the validity period of the sale and purchase contract, but max. 12 months (in justified cases 18 months)
  • Proportion of interest subsidy:
    In the case of a FOREXFOREX loan: 50 % of the interest payable
    In the case of a HUF loan: 30 % of the interest payable
  • Subsidy on the guarantee fee: 50% of the guarantee fee due in the first 6 months
  • Interest subsidy period: max. 6 months
  • Payment of the guarantee fee: the client must pay the amount less the support
  • Handling charge:
    0.5% of the envisaged interest subsidy of the requested loan, but at least HUF 5,000
    in the event that both interest subsidy and guarantee fee support are provided, 0.1% of the aggregate amount

Pre-financing of EU and domestic indirect grant

Grant provided by the European Union or the national budget assists a wide variety of businesses in the area of agriculture and rural development.

The disbursement of the grant is approved on the basis of the paying agency’s resolution/grant document/certification pertaining to it.

The pre-financing of the EU funds of grant originating from EU funds or joint financing occurs on the basis of the resolution of the paying agency (MVH) (or, in the case of certain facilities, at the client’s request) under the following terms and conditions:

  • Presentation of the original copy of the MVH resolution, which evidences the amount of the grant granted
  • The assignment of the grant to the bank
  • A separate account must be opened for the client to be able to accept the grant; simultaneously, based on the registration decree, the modification of the account number registered with the MVH must be initiated.
  • A prompt collection right on the client’s corporate current accounts must be stipulated.
  • The minimum loan amount is HUF 500,000.
  • 80% of the amount of EU joint financing can be loaned (uniformly, irrespective of the composition of funds).
  • In the case of an MVH resolution valid for several years, the MVH resolution for the previous year and the request for disbursement in the given year must be presented from the 2nd year.

Conditions for pre-financing grant from national (domestic) funds are as follows: In the case of pre-financing grant from national (domestic) funds, in addition to the requirements listed in Point 1:

  • creditworthiness
  • certificate evidencing the payment of public dues
  • The pre-financing of 70% of the amount of grant from exclusively national (domestic) funds can be permitted.

The following types of grant can be pre-financed:

  • Area-based subsidy (to be financed at request)
  • Agricultural environment management
  • Subsidy for disadvantaged areas
  • Environment protection, animal welfare and hygiene-related subsidies
  • Afforestation of agricultural areas, subsidy for the fulfilment of forestry tasks
  • Farming of poultry and swine to slaughter
  • Subsidy for farming of fattening bulls
  • Subsidy for milk production (linked to milk quotas financed at request)
  • Subsidy for farming of cows
  • Farming of ewes
  • Subsidy for tobacco growing
  • Subsidy for the growing of rinded fruits
  • Subsidy for growing certain types of plants used for power purposes



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