LOANS TO FARMERS

Hawke's Bay Tribune, Volume XXIII, Issue 107, 19 April 1933, Page 5

LOANS TO FARMERS

INTERMEDIATE CREDITS. REDUCTION IN INTEREST. WELLINGTON, April 18. The amount of reduction to be made in the rate of interest on loans made by the Rural Intermediate Credit Board and by co-operative rural intermediate credit associations will be J per cent. The present rate on all classes of loans made under the board’s lending methods is 6J per cent., and from the beginning of next month the rate on existing and new loans will therefore be 6 per cent. The board’s three methods of financing are: Through rural intermediate credit associations; by the granting of loans direct to farmers; and by the discounting of promissory notes. The latest annual report available that for the year ended June 30, 1932, shows that loans made under all headings since the inception of the board to that date amounted to £937,999. The exact amount of loans made since the beginning of July last was not available to-day, but the total sum lent out to date was stated to be in the vicinity of £1,000,000. A certain amount of this money has been repaid, but the great bulk of it is still out on loan. A reduction of $ per cent, on £1,000,000 represents a saving of £5OOO. In financing farmers through rural intermediate credit associations the board Las been lending to these associations at. the rate of 6 per cent., the associations re-lending the money to farmers at 6J per cent. The lending rate to the association will now be 5J per cent. 1