Purpose

Government Grant Specialised Farm Purchase Loan

Limit: Maximum $75,000.00

Eligibility

Commitment Ratio of Loan Repayment to Net Farm Income to be below 60 percent, based on an average of past 3 years’ production and/or the forecast of the current year cane production.

Equity

33% of the cost or valuation whichever is lower and this equity can also include 30% or up to cap of $7500 from  Government Grant contribution.

Interest Rate

2.99% pay for 12 months and thereafter 6 % pa thereafter   

Term

Term of will be 12 years or term 5 years before expiry of the lease. However, > 50-year farm leases or freehold will have maximum of 20 years as per the current lending guidelines.

Grower has option for early repayment and or full clearance with no exit or early payment fee.

Repayment

Annualised Repayment deducted from the cane payments received from FSC. This ranges from 50 to 100% and once annual repayment is met, rest of the proceeds for the season are refunded.

Security

Mortgage over Farm Lands, Security Agreement over farm crops, Security Agreement over Farm Chattels (tractors, trucks, implements) where needed with Insurance and Personal Guarantees and Irrevocable Authorities

Requirements: [Refer to Specialized Loan Checklist ]