FINANCE FOR FARMERS

New Zealand Herald, Volume LXX, Issue 21470, 19 April 1933, Page 13

FINANCE FOR FARMERS

EURAL CREDIT LOANS P " * THE CUT IN INTEREST RATE ONE-HALF PER CENT LESS [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Tuesday Tho amount of the reduction to be made in the rato of interest on loans made by tho Rural Intermediate Credit Board and by co-operative rural intermediate credit associations will bo $ per cent. Tho 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 iate on existing and new loans will thoreforo bo 6 per cent. Tho board's three methods of financing are through rural intermediate credit associations, by tho granting of loans direct to farmers, and by tho discounting of promissory notes. Tho latest annual report available, that for tho year ended June 30, 1932, showed that loons made under all headings since the inception of the board to that date amounted to £937,999. The exact amount of loans made sinco the beginning of July last was not available to-day, but the total sum lent to date was stated to be in tho vicinity of £1,000,000. A certain amount of this money has been repaid, but the great bulk of it is still on loan. A reduction of £ per cent on £1,000,000 represents a saving of £SOOO. In tho,financing of farmers through the rural intermediate credit associations tho board has been lending to these associations at the rato of 6 per tent, tho associations relending to farmers at 6J per cent. The lending iate to associations will now bo 5J per cent.