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The Strategic Banking Corporation of Ireland (SBCI) has confirmed details of the Future Growth Loan Scheme, including that farmers will have to apply for a minimum of €50,000 to avail of the scheme.
The long-awaited low-cost loan scheme will offer eligible businesses and farmers loans at an interest rate of 4.5% or less.
The maximum draw down is €3m and the loans are for terms of between eight and 10 years.
Banks have been invited to apply to distribute the new low-cost loan scheme, with Bank of Ireland, AIB and Ulster Bank all having previously expressed interest in taking part in the scheme.
Loans in March
Up to €300m is available under the scheme, which is being developed in conjunction with the SBCI, the Department of Agriculture and the Department of Business.
Minister for Business Heather Humphreys previously told the Irish Farmers Journal that she hopes to see the loan scheme fully operational by March this year.
Financial institutions have until 11 February to submit their applications to become lending partners.
Previous scheme
Under the previous low-cost loan scheme, the interest rate was set at 2.95%, with loan terms available between 18 months and three years.
A total fund of €150m was available, with roughly €145m drawn down by farmers. By October last year, some €47.5m had been repaid.
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