The Regional Investment Corporation’s variable rate across its suite of farm business loans will drop 47 basis points to 3.11 per cent from today – 1 August 2019.
“On average our RIC rate is 2 per cent lower than the commercial lenders, which equates to a saving of $102,000 over the five-year interest only period. The August rate cut brings the total saving to $125,500 – now that’s not a number to be sniffed at,” Bruce King from RIC said. “Smart farmers are finding it hard to turn away from the savings and opportunity our loans present.”
In the past financial year, 172 loans have been approved to the value of close to $166 million.
If you haven’t considered RIC finance, it could certainly be worth the call, or speak to your accountant to have a chat about your business and the plans you have for the future.
About the RIC
The Regional Investment Corporation provides affordable finance for farmers to modernise and diversify their business; and state and territory governments for transformative water projects. Our loans encourage growth, investment and resilience in Australia’s regional communities. For more information visit ric.gov.au or call 1800 875 675 (Monday to Friday, 8:30am – 5:30pm local time).
The variable interest rate is linked to the 10-year bond rate and is reviewed twice a year. It’s set at a level that covers the cost to the government of raising the capital for the loans and the operating costs. From 1st August, the farm business loan rate drops from 3.58 to 3.11 per cent and the water infrastructure loan rate drops from 3.12 to 2.65 per cent.
For further information please check the RIC website.