Kharkiv Tractor Plant (KhTZ)

partner

Kharkiv Tractor Plant (KhTZ) is a well-known Ukrainian agricultural machinery producer. During nearly 80 years, KhTZ has produced over 2.5 million tractors and other farming machines.

Today the plant produces machines for various operations in the farming, utility and construction industry. Almost all tractors and special purpose heavy machinery are multi-functional and can be coupled with numerous types of equipment.

The ability to customise each model allows the buyer to acquire equipment that is optimally suited to their needs.

All modern KhTZ products are certified under existing EU standards.

Official website

OJSC «Kharkiv Tractor Plant» terms of cooperation:

The loan is granted to the borrower by way of transfer of funds from the credit account to the current account of the borrower and then to the current account of the OJSC «Kharkiv Tractor Plant».

OJSC «Kharkiv Tractor Plant» terms of cooperation
Loan duration

up to 36 months

Loan currency

UAH

Loan amount: new agricultural machinery (annuity loan)

up to 75 % of the cost of the agricultural machinery

Loan amount: new agricultural machinery (irregular payments)

up to 75 % of the cost of the agricultural machinery

We make decisions on loans

within 7 working days from the moment all documents have been submitted

Borrower requirements:

  • Has been in continuous operation for more than 12 months.
  • Generating stable profits allowing the borrower to pay monthly instalments on the loan and to pay interest without negative consequences for the business; financial class of the borrower — at least 5.
  • Monthly payment on the loan plus interest — no more than 30 % of the average proceeds from business activity (taking into account all previously assumed loan/lease commitments (including those to other banks).
  • A positive credit history (if any).
  • At least 70 % of all agricultural land plots owned/leased by the borrower should be under his control for a term not less than the loan duration plus 1 year
  • Preference is given to borrowers/guarantors with their own agricultural machinery (at least 3 self-propelled vehicles).
  • Guarantee by the business.

Guarantor requirements:

  • A good business reputation.
  • Excellent financial position.

Loan commissions:

  • Loan issuance fee — from 1 % of the limit granted.
  • Commission for execution of the loan documents — UAH 500.
  • Annual commission — 0.5 % of the balance of the debt.

Cost of the item to be bought:

  • Price specified in the agreement (including VAT).
  • No property valuation is conducted unless the purchase and sale agreement was made more than 90 days before the conclusion of the collateral agreement (otherwise valuation is performed according to the effective statutory requirements).

Collateral:

The loan is secured mainly by the assets purchased by the borrower, who pledges the title of the asset to the bank until the moment of full compliance with the undertakings under the loan agreement.

Requirements for second-hand collateral:

On expiry of the loan agreement, the age of the collateral may not exceed:

  • 7 years — for self-propelled agricultural machinery made in CIS, China and Turkey.
  • 5 years — for agricultural inventories (towed vehicles and detachable equipment) made in CIS, China and Turkey.

Insurance:

One of the mandatory conditions for granting the loan is the insurance (annual) of the collateral by an accredited insurance company against inherent risks during the whole life-time of the loan agreement.

Loan/Principal repayment:

Uniform schedule — in equal instalments every month.

Irregular schedule — on an annual basis, at least 3 equal instalments per year.

Repayment of loan interest — on a monthly basis.

Conditions of financing:

Interest rate — from 0.1 % per year in UAH.