Minister for Drought and Rural Finance David Littleproud said the concessional loan product complemented the government’s suite of measures to assist farmers in drought.
“If you’re a farmer, if you’re in drought, you should see if you’re eligible to refinance your debt into this loan,” Minister Littleproud said.
This is not just about new debt it’s the opportunity to refinance existing bank debt and pay absolutely nothing for two years.
“These loans can save farmers more than $250,000 in interest and repayments in the first two years, compared to bank loans.
“Farmers with existing RIC drought loans can also access the two year interest free period.
“Apart from refinancing bank debt farmers could also pay for freight, fodder, water, netting and other essential costs of maintaining a farm.
“This complements other programs such as Farm Household Allowance that puts more than $120,000 in payments in farmers’ pockets to put bread and butter on families’ tables.
“These loans are for viable farm businesses who just need better finance terms.
“They will help those that have shown they have the capacity to repay.
“This is an investment in hard-working Australians. Once it rains farmers will make a quid.”
More information about the drought loan can be found at ric.gov.au or calling 1800 875 675.