Guide to raise funds




Loan with Mortage Security

What is? The loan with mortgage guarantee is one that is granted with the contribution of an in rem guarantee of mortgage on real estate, property of the company that is requesting the loan or a third party (shareholder or proprietor of the company).

Loan contracts with mortgage guarantee are formalized by means of public deed issued notarially and are registered in the Land Registry Office.

Loans with mortgage guarantee can be used to finance the acquisition of industrial or commercial property but they can also be used to finance other types of assets (like machinery) or investments (start or expansion of businesses, new activities) and even refinancing.

Even though loans with mortgage guarantee enjoy lower interest rates than policy loans, their expenses are higher, since the formalities required for their obtention are stricter (valuations, notaries, registry, cancellation, ..)

It is important to point out that the mortgage guarantee can be fixed, when it sets a fixed nominal interest rate that cannot be modified in the term of the loans; variable, when a credit reference is set that is modified periodically; or mixed, when an initial period is set at fixed rate and a final period at variable rate.

The references of interest rates used in loans with mortgage guarantee are:

Interbank type, normally to 12 months (Euribor) and Index of Reference of Mortgage Loans

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