Creed Launches Low Cost Loan Scheme for Farmers - Loans of up to €150,000, for up to 6 years, at interest rate of 2.95%, will be available this week through AIB, Bank of Ireland and Ulster Bank
The Minister for Agriculture Food and the Marine, Michael Creed TD, today launched the Agriculture Cashflow Support Loan Scheme. The Scheme was developed in co-operation with the Strategic Banking Corporation of Ireland (SBCI), which has today confirmed that AIB, Bank of Ireland and Ulster Bank will distribute the loans, making €150 million available to farmers throughout Ireland at low-cost interest rate of 2.95%. This is supported by €25 million being provided by the Department of Agriculture, Food and the Marine, including €11 million in EU exceptional adjustment aid.
“One of my priorities is to address the impact of the change in the sterling exchange rate and lower commodity prices in some sectors which have caused cash flow difficulties for farmers. This innovative loan scheme will provide farmers with a low cost, flexible source of working capital. This will allow them to pay down more expensive forms of short-term debt, such as merchant credit or overdrafts, contributing to the ongoing financial sustainability of their farming enterprises” said Minister Creed.
This loan scheme forms part of a “three pillar strategy” in response to income volatility, which the Minister announced as part of Budget 2017. Along with tax measures and farm payments, it will alleviate some of the pressures being caused by the recent market difficulties, which have been compounded by the uncertainty around Brexit.
The Minister thanked the SBCI and the participating financial institutions (AIB, Bank of Ireland and Ulster Bank), which will have the low cost loans available this week, “The SBCI has demonstrated its commitment to the agriculture sector and has worked with my Department to get this product to the market in a timely manner. I welcome the participation of the main banks, which will ensure nation-wide coverage for the scheme. The fact that most farmers will have an existing relationship with the participating banks should facilitate the loan application process”.
Note for Editors
- Loans of up to a maximum of €150,000
- Loan term of up to 6 years
- Loans are unsecured
- Optional Interest only repayments available 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.
To view this Press Release as a PDF: DAFMPR 12/2017 (pdf 479Kb)
The Minister for Agriculture Food and the Marine, Michael Creed TD, today launched the Agriculture Cashflow Support Loan Scheme. Pictured with Nick Ashmore , Chief Executive Officer of the SBCI
Date Released: 31 January 2017