- Banks and other financial institutions invited to distribute new low-cost loan scheme announced in last month’s Budget – applications to be submitted by 25th November
- Scheme will offer loans at 2.95% to farmers in early 2017
- SBCI announces details of loan features
16 November 2016: The Strategic Banking Corporation of Ireland (SBCI) has today invited banks and other lenders to take part in a major new loan scheme that will make €150 million available to farmers throughout Ireland at low-cost interest rates of 2.95%.
The SBCI has issued an “Open Call” for financial institutions to apply by 25th November 2016 for designation as a lending partner under the Agriculture Cashflow Support Loan Scheme, which was announced in last month’s Budget and is being developed in conjunction with the Department of Agriculture, Food and the Marine.
The Scheme aims to support farmers experiencing short-term financial pressure due to price and income volatility. The loans will enable farmers to plan and budget more effectively by providing an attractive cash flow support loan product as an alternative to more expensive forms of credit such as merchant credit and bank overdraft facilities.
Loan features
• Loan amount of up to a maximum of €150,000
• Loan term of up to 6 years
• Loans are unsecured
• Interest only period of up to 3 years (minimum offer of 18 months) provided at the start of the loan
• Interest rate of 2.95% for the term of the loan
Loans can be used for:
• Working capital requirements;
• As a more sustainable alternative to short-term credit facilities;
• As an alternative to merchant credit.
The SBCI has published more details for institutions who wish to submit applications on the SBCI website at sbci.gov.ie.