The Regional Investment Corporation’s (RIC) farm business loan variable interest rate is changing from 2.17 per cent to 2.31 per cent from 1 February 2022.
The RIC’s Plantation Loan, which launched in December 2021 for new plantations and replanting 2019-20 Black Summer bushfire-damaged plantations already reflects the updated government bond rate and will remain at 1.89 per cent. Farm business loans include the Drought, AgBiz Drought, AgriStarter and Farm Investment loans.
RIC Acting Chief Executive Officer Paul Dowler said the RIC’s variable interest rate is reviewed twice a year against the 10-year government bond rate averaged over six months.
“The 14 basis point change from 2.17 to 2.31 per cent is due to the increase in the 10-year government bond rate, which determines the RIC’s variable interest rate. A small portion of the variable interest rate also covers the RIC’s administrative costs, which has not changed,” said Mr Dowler.
“New farm business loan customers can benefit from the concessional variable interest rate and interest only terms over the first five years of the loan, followed by principal and interest repayments for the remainder of the 10-year loan term.
“Existing customers will have the variable rate change applied to their loan from 1 February 2022. All new farm business loan applications will be subject to the new rate.”
