The Co Mayo credit union is now inviting farmers to apply for its Agri Loan product, which it says is “designed to support local farming”.

Farmers can borrow up to €50,000 for up to 10 years, at a rate of 6.7% APR. Livestock, machinery, sheds and feed are examples of the purchases Westport Credit Union says it can finance with the loans.

There are no application fees and the lender offers flexible repayment options without penalties for early repayments.

The interest rate is in line with those offered by banks for similar-sized unsecured loans. It is also similar to the 6.57% APR loans recently launched under the joint Cultivate offer by four credit unions in Co Galway.

To the advantage of Westport Credit Union, it offers terms of up to 10 years, as opposed to seven years for Cultivate. Its rate is also fixed, while the rates on loans available from Cultivate and most banks are variable. With European Central Bank rates at an all-time low, variable rates are more likely to go up than down in the coming years.

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