STATE ADVANCES.

Ashburton Guardian, Volume 60, Issue 246, 25 July 1940, Page 3

STATE ADVANCES.

YEAR’S ACTIVITIES REVIEWED.

(Per Press Association). WELLINGTON, July 24. A total of 2111 new loans, aggregating £1,868, 368, was granted during the year ended March 31 last by the State Advances Corporation. This is shown in the annual report on the corporation’s activities, which was tabled in the House oi : Representatives today. Loans granted for house building during /the year numbered 161/, of tho value of £1,540,130, while loans for other purposes totalled 494, and aggregated £328,238. The total number of loans under administration at March 31 was 66,482 —21,704 farm and 44,778 residential—of a value of £51,394,200 —£25,326,792 on farm securities and £26,06/ ,408 on residential properties. “The payment of instalments during the last financial year has shown a further improvement,” the report states. “It is estimated that the amount received in interest represents about 99 per cent, of the amount due, while the majority of mortgagors have also been able to meet principal instalments due under their mortgages, the funds from this source being available for further investments on new loans. Tho gross profit of £798,379 is approximately £20,700 lower than last year. “The lending rate for the first mortgages remains unchanged at 4-£ per cent., which lias been maintained since 1935. The corporation’s main lending policy is allied to long-term, tabic mortgages. For house building, the loans’ terms vary according to the type of building and circumstances of the borrower, while for suitable farm securities the maximum term is 45 years.”