Farmers, including those without existing credit union savings, can now borrow up to €50,000 unsecured from Ballinasloe Credit Union, Naomh Breandan Credit Union in Loughrea, Gort Credit Union and St Jarlath’s Credit Union in Tuam.
The joint “Cultivate” agri loans are available over a maximum of seven years at a current rate of 6.75% APR, for investment or cashflow needs. To meet local drystock farmers’ income streams, the credit unions are offering options to schedule repayments once or twice a year.
The initial loan fund available from the four credit unions is around €10m. “We have plenty of money to give out, and we want to give some farming loans,” Anne McInerney, chief executive of Gort Credit Union, said at the launch in Loughrea on Tuesday. She added that Teagasc and Mountbellew agricultural college had trained credit union staff on farm management. “We did classroom courses and we went out to the sheds. We’re well versed in entitlements and grants,” she said.
Speaking at the event, IFA president Joe Healy said the exhaustion of the €150m Government-supported low-cost loan fund in the past month proved the “absolute appetite that there is for farm finance”. Healy welcomed the flexible repayment schedule and local relationship management under the Cultivate offer. He added that farmers were a safe outlet, saying: “Their performance in repaying their loans is second to none”.
Listen to "Credit unions launch new farm loans in Co Galway" on Spreaker.
The loan size may appeal to many local farmers after a survey showed that most would be looking to borrow between €20,000 and €30,000. Abbeyknockmoy sheep and suckler farmer Seán Mannion said a Cultivate loan would work for him as a young farmer: “I would have 60% grant aid available to me and whether it’s to build a parlour, a sheep race or weighing scales, then you need to access capital and that’s a major constraint.” He added that while banks routinely require a business plan and a 40-page application document, his prior experience with credit union loans is that he “had the money on the day”.
Next week: can credit unions become major agri lenders? Read more
Waiting list grows for low-cost loans
Farmers, including those without existing credit union savings, can now borrow up to €50,000 unsecured from Ballinasloe Credit Union, Naomh Breandan Credit Union in Loughrea, Gort Credit Union and St Jarlath’s Credit Union in Tuam.
The joint “Cultivate” agri loans are available over a maximum of seven years at a current rate of 6.75% APR, for investment or cashflow needs. To meet local drystock farmers’ income streams, the credit unions are offering options to schedule repayments once or twice a year.
The initial loan fund available from the four credit unions is around €10m. “We have plenty of money to give out, and we want to give some farming loans,” Anne McInerney, chief executive of Gort Credit Union, said at the launch in Loughrea on Tuesday. She added that Teagasc and Mountbellew agricultural college had trained credit union staff on farm management. “We did classroom courses and we went out to the sheds. We’re well versed in entitlements and grants,” she said.
Speaking at the event, IFA president Joe Healy said the exhaustion of the €150m Government-supported low-cost loan fund in the past month proved the “absolute appetite that there is for farm finance”. Healy welcomed the flexible repayment schedule and local relationship management under the Cultivate offer. He added that farmers were a safe outlet, saying: “Their performance in repaying their loans is second to none”.
Listen to "Credit unions launch new farm loans in Co Galway" on Spreaker.
The loan size may appeal to many local farmers after a survey showed that most would be looking to borrow between €20,000 and €30,000. Abbeyknockmoy sheep and suckler farmer Seán Mannion said a Cultivate loan would work for him as a young farmer: “I would have 60% grant aid available to me and whether it’s to build a parlour, a sheep race or weighing scales, then you need to access capital and that’s a major constraint.” He added that while banks routinely require a business plan and a 40-page application document, his prior experience with credit union loans is that he “had the money on the day”.
Next week: can credit unions become major agri lenders? Read more
Waiting list grows for low-cost loans
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