Low-cost loan scheme fully-subscribed – AIB

AIB has announced that it will no longer be accepting applications to the SCBI Agriculture Cashflow Support Loan Scheme or the low-cost loan scheme.

On January 31, 2017, AIB launched a €60m fund in conjunction with the Strategic Banking Corporation of Ireland (SBCI).

The fund was designed to support the cash flow and working capital needs of Irish farmers and SMEs, engaged in primary agriculture and was available at a discounted rate of 2.95%.

Due to the significant take up, the fund is now fully subscribed and, as a result, the SBCI Agriculture Cashflow Support Loan offer is no longer available for new applications, the Bank said in a statement.

Yesterday, Bank of Ireland moved to accept applications to the low-cost loan or the Agriculture Cashflow Support Loan Scheme on a provisional basis only.

In a statement, the bank said there has been significant demand for the loans and, based on its assessment of all the applications received to date, the €65m available to the bank is likely to be fully utilised.

In early February, Bank of Ireland launched the SBCI Agriculture Cashflow Support Loan scheme with the bank providing up to €65m.

John Fitzgerald, Head of Agriculture, Bank of Ireland confirmed: “From Thursday, March 2, 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,” he said.