On 23 October 2015 Applications opened for drought affected Victorian farmers to access the Drought Concessional Loans Scheme.
The Drought Concessional Loans Scheme is part of an Australian Government drought assistance package to support farm business experiencing significant financial impact as a result of drought. Drought Concessional Loans are designed to help farm businesses in Victoria to recover from and prepare for future droughts and return to commercial viability in the long term. Rural Finance is the agent in Victoria.
The scheme will offer loans for;
- Re-structuring of existing eligible farm debt
- Funding operating expenses necessary to continue normal operations
- Drought preparedness and recovery activities
The loans have the following characteristics;
- Term of five years. At the end of term the loan is required to be repaid in full.
- Variable interest rate of 3.05% (reviewed six monthly)
- Maximum loan amount of $1,000,000 (capped at 50% of total eligible farm debt)
- Total pool of $30,000,000 for Victorian farmers
To be eligible;
- Farming enterprise operating for at least three years
- Experiencing significant financial impact as a result of drought
- Good long term prospect to returning to profitable trading and sustainable debt levels
Farmers thinking about applying for a Drought Concessional Loan talk to someone at Rural Finance or your local Rural Financial Counselling Service.
To find out more about drought concessional loans please contact Rural Finance on 1800 260 425 or visit ruralfinance.com.au.
For more information on the range of Australian Government assistance for farmers, farm businesses and rural communities, visit agriculture.gov.au/assistance.