David Littleproud MP announces Drought Loan offerings
Minister for Drought and Rural Finance David Littleproud announces concessional drought loans available through the Regional Investment Corporation (RIC) – taking Government drought commitments to over $8billion.
The loans are offered at two years with no interest or repayments of up to $2million. For years 3-5 the loans will be interest only at a concessional rate.
“If you’re a farmer, if you’re in drought, you should see if you’re eligible to refinance your debt into this loan,” said Minister Littleproud.
“This is not just about new debt it’s the opportunity to refinance existing bank debt and pay absolutely nothing for two years.
“These loans can save farmers more than $250,000 in interest and repayments in the first two years, compared to bank loans.
“Farmers with existing RIC drought loans can also access the two year interest free period.
“Apart from refinancing bank debt farmers could also pay for freight, fodder, water, netting and other essential costs of maintaining a farm.
“This complements other programs such as Farm Household Allowance that puts more than $120,000 in payments in farmers’ pockets to put bread and butter on families’ tables.
“These loans are for viable farm businesses who just need better finance terms.
“They will help those that have shown they have the capacity to repay.
“This is an investment in hard-working Australians. Once it rains farmers will make a quid.”
For more information visit ric.gov.au or calling 1800 875 675.
- Drought loans now available through the Regional Investment Corporation
- Loans of up to $2 million interest and repayment free for the first two years
- Years 3-5 are interest only at a concessional rate with the balance to be repaid over the remaining term.
- After ten years there is an option to refinance any remaining balance.
- Loans can be used to prepare for, manage and recover from drought. The loans can refinance existing debt, fund drought-related activities, enhance productivity or pay for operating expenses or capital.
- Drought loans are offered by the Regional Investment Corporation along with a range of other products including Farm Investment Loans and AgRebuild Loans.