Low interest loans

Press, Volume CXIII, Issue 33370, 31 October 1973, Page 16

Low interest loans

Sir,—Are the State’s lowinterest loans available to everyone, or are they reserved for those with no. other means qf buying an owner flat? I heard of a woman owning a $3OOO car, having considerable investments and as well, running a baby-sitting service

employing other women, who applied for a low interest loan, on the grounds that she could not afford the rent of her modern flat and being over sixty, she could not raise a mortgage in the ordinary way. Surely trust companies, insurance companies and others would supply two-thirds of the cost of a new owner flat, if the buyer could find onethird —in this case, well within the person’s means—at the current rate of interest? —Yours etc., PUZZLED. October 27, 1973. [Mr W. M. Mackay, Christchurch manager of the State Advances Corporation, replies: “Anyone is entitled to apply for a loan from the State Advances Corporation. The loans committee, which requires the maximum contribution from an applicant’s resources, makes a decision after considering the total application including the statutory declaration as to property, other assets and income completed by the person seeking the loan. Verification of income is required before the concession rate of interest is granted.”]