Based on applications already submitted by farmers, Bank of Ireland has exhausted all of its funding available under the low-cost loan scheme, which opened just weeks ago on 1 February.
Bank of Ireland has confirmed that while it will continue to take applications from farmers, applicants must go on a waiting list.
John Fitzgerald, Head of Agriculture, Bank of Ireland told the Irish Farmers Journal: “From today, Thursday 2 March, all applications for loans under the scheme can now only be accepted on a provisional basis, contingent on any residual availability within the scheme which may emerge over the next number of weeks.
"Bank of Ireland continues to encourage all our customers and farmers to discuss their funding requirements.
"If and when residual funding availability within the Scheme is confirmed, provisional applications will then be processed on a ‘first come first served’ basis.”
Provisional applications will be processed on a ‘first come first served’ basis
Bank of Ireland received the biggest allocation, some €65m, within the €150m fund, while AIB received €60m and Ulster Bank €25m.
The Irish Farmers Journal was contacted by farmers on Thursday who had tried to apply for the Bank of Ireland low-cost loan scheme and were asked to go on a waiting list as the loans were oversubscribed.
Applications exceed expectations
Bank of Ireland told the Irish Farmers Journal: “There has been significant early demand for loans under the scheme since its launch four weeks ago, with the number and value of applications received exceeding expectations.
“As a result and based on our assessment of all the applications received to date, it is most likely that the scheme is now fully subscribed, ie the €65m available to Bank of Ireland is fully utilised.
“Our priority at this stage is to process all the current applications that are in the pipeline to credit decision stage. We can then fully determine the total amount approved and committed to drawdown.
‘‘As of now, we anticipate that further availability within the scheme will be restricted to a low number of additional applications. We are not in a position to be definitive on this until the current application pipeline is processed and decisioned.
“With effect from Thursday 2 March 2017, all applications to Bank of Ireland for loans under the scheme can now only be accepted on a provisional basis, ie strictly contingent on any availability within the scheme which may emerge over the next number of weeks.
‘‘If and when residual funding availability within the scheme is confirmed, provisional applications will then be processed on a ‘first come, first served’ basis.
This will be disappointing for customers who have not yet applied for funding; however we are bound by the EU rules and limits
“We appreciate that this will be disappointing for customers who have not yet applied for funding; however we are bound by the EU originated rules and limits of the scheme, with no exceptions,” the statement continued.
“While we may not be in a position to fund all of our customer’s requirements through the Strategic Banking Corporation of Ireland (SBCI) loan scheme, we are happy to discuss our mutual customers’ needs with a view to applying for a suitable solution from the existing Bank of Ireland suite of agri lending solutions.”
Heavily subscribed
The Irish Farmers Journal understands that AIB has been heavily subscribed for its loan fund of €60m, while Ulster Bank is understood to still have funds available within its €25m allocation.
On Wednesday, the SBCI said it was pleased with the interest shown in the low-cost loan fund.
“We’re seeing really strong interest across the farming community from applicants keen to refinance more expensive overdrafts or merchant credit facilities,” SBCI chief executive Nick Ashmore said. “We will provide an update on loan drawdowns in due course.”
Full coverage of Agri Cashflow Support Scheme
Short lifespan for low-cost loans
Special focus: agri finance
Based on applications already submitted by farmers, Bank of Ireland has exhausted all of its funding available under the low-cost loan scheme, which opened just weeks ago on 1 February.
Bank of Ireland has confirmed that while it will continue to take applications from farmers, applicants must go on a waiting list.
John Fitzgerald, Head of Agriculture, Bank of Ireland told the Irish Farmers Journal: “From today, Thursday 2 March, all applications for loans under the scheme can now only be accepted on a provisional basis, contingent on any residual availability within the scheme which may emerge over the next number of weeks.
"Bank of Ireland continues to encourage all our customers and farmers to discuss their funding requirements.
"If and when residual funding availability within the Scheme is confirmed, provisional applications will then be processed on a ‘first come first served’ basis.”
Provisional applications will be processed on a ‘first come first served’ basis
Bank of Ireland received the biggest allocation, some €65m, within the €150m fund, while AIB received €60m and Ulster Bank €25m.
The Irish Farmers Journal was contacted by farmers on Thursday who had tried to apply for the Bank of Ireland low-cost loan scheme and were asked to go on a waiting list as the loans were oversubscribed.
Applications exceed expectations
Bank of Ireland told the Irish Farmers Journal: “There has been significant early demand for loans under the scheme since its launch four weeks ago, with the number and value of applications received exceeding expectations.
“As a result and based on our assessment of all the applications received to date, it is most likely that the scheme is now fully subscribed, ie the €65m available to Bank of Ireland is fully utilised.
“Our priority at this stage is to process all the current applications that are in the pipeline to credit decision stage. We can then fully determine the total amount approved and committed to drawdown.
‘‘As of now, we anticipate that further availability within the scheme will be restricted to a low number of additional applications. We are not in a position to be definitive on this until the current application pipeline is processed and decisioned.
“With effect from Thursday 2 March 2017, all applications to Bank of Ireland for loans under the scheme can now only be accepted on a provisional basis, ie strictly contingent on any availability within the scheme which may emerge over the next number of weeks.
‘‘If and when residual funding availability within the scheme is confirmed, provisional applications will then be processed on a ‘first come, first served’ basis.
This will be disappointing for customers who have not yet applied for funding; however we are bound by the EU rules and limits
“We appreciate that this will be disappointing for customers who have not yet applied for funding; however we are bound by the EU originated rules and limits of the scheme, with no exceptions,” the statement continued.
“While we may not be in a position to fund all of our customer’s requirements through the Strategic Banking Corporation of Ireland (SBCI) loan scheme, we are happy to discuss our mutual customers’ needs with a view to applying for a suitable solution from the existing Bank of Ireland suite of agri lending solutions.”
Heavily subscribed
The Irish Farmers Journal understands that AIB has been heavily subscribed for its loan fund of €60m, while Ulster Bank is understood to still have funds available within its €25m allocation.
On Wednesday, the SBCI said it was pleased with the interest shown in the low-cost loan fund.
“We’re seeing really strong interest across the farming community from applicants keen to refinance more expensive overdrafts or merchant credit facilities,” SBCI chief executive Nick Ashmore said. “We will provide an update on loan drawdowns in due course.”
Full coverage of Agri Cashflow Support Scheme
Short lifespan for low-cost loans
Special focus: agri finance
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