SOLDIERS' LOANS

New Zealand Herald, Volume 78, Issue 24102, 22 October 1941, Page 9

SOLDIERS' LOANS

PLAN ANNOUNCED farm land and homes INTEREST concessions Detailed plans for loans of various types for men discharged from the #rm ed forces of the present war, as ar t of the Government's rehabilitation scheme, were announced yesterday . the Minister of Finance, the Hon. Nash. He also promised that vocational training would be developed to provide suitable courses for men who returned needing- training before resuming civil occupations. Loans announced were as follows: (1) Loans up to £.3000 for suitable men capable of operating separate farms, and loans up to £1250 for stock up to- £ISOO to build or in some cases buy houses, with interest It 41 per cent," subject to concessions. (3) Loans for tools and furniture, interest free. (4) Loans up to £SOO to purchase businesses, at 4} per cent, subject to concessions. Farm Settlement

Mr Nash said there would be two chases of the farming scheme, one to Lai with those who had had sound ex- " j enC e and were considered capable of operating a separate farm, subject t the necessary finance being made available and the other to settle men, l ar rrelv those with little or no previous experience. on land development hlocks The financing of those suitable immediate establishment on septate units of existing farm lands would be the duty of the State Advances Corporation, which had been authorised to entertain applications for foan" up to £3OOO. •If the land is considered suitable oil I the price is reasonable, having regard to its productive capacity, and all othe r aspects are satisfactory, loans , nil( r be granted up to 100 per cent of the" value where necessary," Mr. Nash continued. "To purchase stock and imTiVments the applicant may be granted R loan not exceeding £1250 through the Rural Intermediate Credit Board, provided the amount advanced is not in excess of the value of the stock as guessed bv the board. Interest on loans granted under this scheme on the seniritv of farm lands will be at the rate of 4* per cent and on stock security at 5 per cent here necessary, security may be taken over iaiid end'stock collaterally." Financing Homes

The Lands Department, operating through the Land Settlement Board vould use the provisions of the Small Farms Amendment Act,_ 1940. Men ceekiuf assistance in this way would be- given an opportunity of gaming experience. and as soon as they were able to demonstrate their ability to undertake the independent management ot a separate unit, they would be given en opportunity to commence by themselves. Further details of this part of the scheme, as well as of a general farm training programme, would be Biinounced in the near future. The financing of homes was also discussed bv the .Minister. He said the Government had approved of loans being granted by the State Advances Corporation to ex-servicemen for this purpose up to 100 per cent of the approved cost of the section and dwelling. The applicant would be required to comply with the usual conditions m regard to the section and the house, local body by-laws, accepted standards of design, """Borrowers will have the benefit of the corporation's special building loan scheme and plans, specifications anc j prices will be .checked by the trained staff of the corporation.' ne said. "Where the family requirements ot some of the ex-servicemen will not be met by the erection of a new house, the corporation may give consideration to financing the purchase of an existing dwelling, provided the house is in a sound condition and has an estimated utility life sufficient to justify the purchase price and other factors. Special Concessions

"The maximum loan for a new or existing dwelling will be £ISOO. The rate of interest will in either case be per cent and the loans will be reparable by instalments over suitable periods having regard to the nature of the security and the borrowers financial position. In considering applications for either farm or housing loans, the corporation will take into account the borrower's own cash resources, which should first be applied toward the cost of his proposed purchase. Special concessions for borrowers under the rehabilitation scheme to onset any disadvantage experienced by exservicemen in adapting themselves to civil life, were announced by Mr. Nash. He said the aim was to give them every opportunity of success. He also recalled that the State Advances Corporation would assist returned men in the purchase of a business with loans up to £SOO, and said that loans for tools and furniture were free of interest and the instalments required to repay the loans were assessed to suit the circumstances of the borrower. "Business loans are subject to an interest charge of per cent and are repayable by instalments over a suitable period," the Minister added. In the first year, however, provided the instalments are promptly paid and otherwise the conditions of the are complied with, the borrower xruj he granted a rebate of interest of per cent, and if there is need for further assistance an adjustment of the instalments for a further period may be considered. Reductions In Interest

"The instalment system of repayment Trill also apply to house loans ; and the interest rate of 4| per cent will be rebated to 2 per cent for the first year on similar conditions to those applied to business loans. The corporation will lave authority to adjust later instalments if the circumstances of the borrower warrant any further concessions. "The table mortgages that will be arranged for farm and stock loans will be on terms capable of performance by the average borrower under normal conditions, but the need for help in becoming established is likely to be Greater in a farming venture than would he the case in other industries. It has accordingly been decided that, subject to prompt payment and compliance with covenants in the mortgage, interest on farm loans will be rebated from 4. J per cent to 2 per cent for the first year, and 3 per cent for the next two years, and with stock loans a reduction from 5 per cent to 'l\ per cent will apply for one year. Borrowers under this scheme *iH be working under the close supervision of the corporation's field officers, and should it become apparent that further assistance is necessary, some appropriate adjustment in instalments will be agreed to."