Posts Tagged ‘ Loans ’

Citizens Bank Minnesota Partners With Farm Service Agency Lending Programs

Citizens Bank Minnesota assists borrowers who utilize Farm Service Agency Lending Programs.  This assistance can range from beginning Farmer Loans to FSA Guaranteed Operating and Real Estate Loans.  Citizens is a Certified Lender with the Farm Service Agency which means that the application process is streamlined with minimal paperwork.  We have several lenders trained to walk you through the process.  A current popular lending partnership that the Bank has with Farm Service Agency is the Beginning Farmer Down payment Loan Program.  This program enables a beginning farmer who has less than 10 years experience to purchase a farm with favorable loan terms.  Terms and conditions of the loan program are as follows:

  1. Loan funds must be used to purchase farm real estate.
  2. Purchaser must have at least 5% cash down.
  3. The Bank will finance 50% of the purchase price with a 1st mortgage on the property with the loan begin repaid over a 30 year period.  Interest rates are at the Bank’s normal rates and terms.
  4. The Farm Service Agency will finance 45% of the purchase price at an interest rate fixed for 20 years.
  5. The borrower must qualify as a beginning farmer, which means that he cannot have operated a farm for more than 10 years and he does not own a farm greater than 30% of the median size farm is in his county.
  6. The beginning farmer may be required to be enrolled in an Adult Farm Management Program.

In addition to the Beginning Farmer Down payment Loan Program, Citizens can also provide Farm Service Agency guaranteed operating and farm ownership loans.  Guaranteed loans cannot exceed $1,119,000.00.  Loan purposes can be for annual operating needs, equipment purchases, real estate purchases or debt refinance.  Our Bank lending officers fully understand the Farm Service Agency loan programs.  We are here to assist you in filling out the necessary Balance Sheets, Cash Flows and Application forms.  Our Certified Lending Status makes the application process much easier than applying directly with the Farm Service Agency.  Citizens will be happy to assist you.

By: Kevin Yager, Vice President

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Could you use $4,000 for College?

Citizens Bank Minnesota has paid out $104,500 in awards since 2000 with their Scholarship Program. 

Citizens awards two or more scholarships each year to local graduating seniors who will be attending post-secondary education. Scholarship Management Services, a division of Scholarship America of St. Peter, performs the selection process and administration. This program was instituted at Citizens as a way to show our commitment to the community and our belief in today’s youth. Citizens plans to continue this tradition for years to come!

Applicants for the scholarship program must be high school seniors, who plan to enroll in a full-time undergraduate course of study at an accredited four year college or university in the fall following graduation. This program’s requirements include that the student be a customer of Citizens Bank Minnesota with an open and active checking account. The applicant must also attend the required educational banking classes before applications are distributed.

Students applying for the scholarship are required to attend the ‘Real Life 101’ seminar. This seminar focuses on teaching valuable lessons in banking. The classes include Personal Finance, Loans and Credit, Investments, Insurance and Online Banking tools. The classes include lecture as well as real life examples, such as how to work a budget, what is needed to apply for a loan, and various investment options to name a few.

Scholarship awards are $1,000.00 each. Awards may be renewed for an additional three years, on the basis of satisfactory academic performance and maintaining full-time enrollment. Applicants not selected for the scholarship awards will be entered into a drawing to win some fun prizes. Not all applicants will be selected to receive an award.

Interested students must complete the application they receive after meeting the bank’s requirements. Applicants are responsible for gathering and submitting all necessary information. Applications are evaluated on the information provided; therefore, the applicant must answer questions to the fullest extent possible. All information received is considered confidential and is reviewed only by Scholarship America. Applications must be completed and postmarked by the deadline set by Scholarship America.

Scholarship recipients are selected on the basis of academic record, potential to succeed, leadership, participation in school and community activities, honors received and work experience. Students are also asked to complete a statement of educational and career goals, and submit an outside appraisal from a teacher or counselor. Financial need is not considered. Selection of recipients is made by Scholarship America. In no instance does any bank or school official play a part in the selection. All applicants agree to accept the decision of Scholarship America as final.

If you are interested in this program contact Scholarship Coordinator Missy Marti (mmarti@citizensmn.com). Our first Real Life 101 seminar for 2010 will be held Tuesday, December 28th in New Ulm. 

Missy Marti, Assistant Marketing Director/eWorld Coordinator

An Interesting Alternative to Student Loans

http://www.npr.org/templates/story/story.php?storyId=129727074

I found this interview, which ran on NPR on September 8, 2010, quite interesting.  The interview is with Neoga Leviner, General Manager, Lumni Inc., a company that has created an interesting alternative to traditional student loans.

Traditionally, students borrow the money they need for college and are able to defer interest from accumulating until after their graduation.  Once they graduate, students may have thousands or dollars worth of debt to pay off – a sizeable hole that students are forced to climb out of before they can even dream about saving for a car, a house, or – gulp! – retirement.

Lumni offers students an alternative.  They will loan students up to $6,000 a year for college – not enough to completely fund a college education, but an amount meant to help bridge the gap between the amount available to the student and the amount needed by the student.  In exchange, students sign a contract to pay Lumni a percentage of their salary (the actual percent is not mentioned in the interview) for a fixed period of time, usually 10 years, after they graduate.

Lumni was started in Latin America, and this year will be making their first loans to students in the United States.  If you are going to start college soon and are forced with the dilemma of financing your education, you may wish to check with Lumni. Would this type of loan interest you?

By: Joe Geistfeld, Marketing Intern

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