FARMERS’ FINANCE

Northern Advocate, 19 April 1933, Page 3

FARMERS’ FINANCE

DURAL LOANS INTEREST.

REDUCTION OF HALF PER CENT

(Per Press Association.— CouvrleUt.)

WELLINGTON, This Day.

The amount of the reduction to bo 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 half per cent. The present rate on all classes of loans made under the board's lending methods ia CD 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 Joans direct to farmers, and by the discounting of promissory notes. The latest annual report available, that for the year ended dune 80, 1033, showed that loans made under all headings since the inception of the Board to the date amounted to £937,900.

The exact amount of loans made since the beginning of July last was not available today, but the total sum was stated lo be in the vicinity of £1,000,000. iSomc of the money has been repaid, but tlic bulk of it is still on loan, A reduction of half per cent on the million pounds represents a saving of £SOOO. In the financing of farmers through 1 lie rural intermediate credit associations, the Board lias boon lending to these associations at the rate of 0 per cent, the association relending to farmers at 01 per cent. Lending rates to associations will now be 51 per cent.