RURAL CREDITS

Hokitika Guardian, 19 April 1933, Page 5

RURAL CREDITS

LOWER INTEREST ON LOANS.

REDUCTION OF HALF PER CENT.

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WELLINGTON, April *lB,

The jainouut of reuuctwu • to be made- in tne rate of interest on" loans made by tne Rural intermediate Credit Associations will be one-half per cent. Tlie present ratei on ad classes of loans tnaue under the. Hoard’s lending methods is ed per cent., and rroui die beginning ol next montii the rate on existing new. loans will- thererore be 6 per cent.

The Hoard’s three methods of financing are: Through the Rural Intermediate Credit Association; or the granting of loans direct to farmers, arid by tne discounting .of , promissory -notes.' The iatest, annual report - that for the year ended June 30, 1932, shows the loans made under, all headings since the inception, of ( the Board to that date amounted to £937, yyy. Tiie exact amount of loans made since the beginning of July last was not available to-aay, but -the -total,, sum lent out to date was stated t 0 he in the vicinity of one million., A , certain 1 amount of this money has been repaid, but the great bulk of itdjs afilL out on loan. A reduction of one-half per cent, on one million,.-represents saving of £6OOO in financing; frinhefs ! through rural i intermediate ciudib associations,

Tile Board lias been lending- to those associations at tho rate of 6 per cent. • the associations l'e-lending to farmers nt 0} per cent. The lending rate ty? the associations will now; be per cent.