Editorial: Time for rural banking inquiry
OPINION: A recent survey revealed that farmers are feeling excessive and undue pressure from their banks.
The new term loan, named Sheep & Beef Direct, is designed for established farmers looking to buy or refinance a sheep or beef farm and will be available online.
This is the newest of Heartlands’ digital lending products.
“Not all Kiwi farmers are able to spend hours on the phone or schedule multiple meetings with a relationship manager,” said Heartland Bank chief executive officer Chris Flood.
“Sheep & Beef Direct is intended to relieve some of the pressure on those farmers who need to arrange finance for the farm, but struggle to find the time to do so.”
The launch comes at a time when rural lending is on its fastest downturn since 1992, according to data from the Reserve Bank of New Zealand.
“With rural lending on a steady decline, customers may be looking into other options that better meet their needs,” said Flood.
He says the new Sheep & Beef Direct term loan is a cost-effective alternative for farmers.
The loan offers up to five years interest only or 25-year terms with revolving credit options.
The interest rate is capped at 4.20% per annum for 12 months and the bank says there are no set up fees attached.
