Register your interest here or call 1800 875 675 (Monday to Friday; 8:30am–5:00pm local time).
Q.The government has announced changes to the Drought loan, what are they?
Our current Drought loan terms will be enhanced to offer 2 years interest free, 3 years interest only and 5 years principal and interest. These loans are for amounts of up to $2 million.
Q.What can the revised Drought loan be used for?
The Drought loans are available for farmers to feed, water, freight, restock, refinance, or anything that might keep their operation going.
Q.When will the interest free period on the revised Drought loan start?
All Drought loan applicants including existing Drought loan customers will be able to enjoy the two-year interest free period from the 1st of January 2020.
Q.When can I apply for the updated Drought loan?
As there will be no changes to eligibility criteria or application form available here, you can continue to collate your information and apply for a Drought loan when you have a complete application.
Q.Can I change my loan agreement on my existing Drought loan?
If you have an existing Drought loan you will be advised in writing that the change will come into effect on January 1st, 2020. If you are comfortable with this change you will not need to respond to us.
If you would prefer to opt out of this change and retain the current applicable interest rate of 2.11% p.a. you will need to call us on 1800 875 675.
Q.I have a Drought loan application that is currently with the RIC for assessment. What do I need to do?
Your Drought loan application will continue to go through the assessment process. We will be in contact if there is any further information, we require from you.
The Drought loan settings will change as at 1 January 2020 to offer the interest free period. If you have been approved before this time you will be sent a letter confirming this change. If you are comfortable with this change you will not need to respond to us. If you wish to continue to pay interest according to the current loan program then please let us know by calling 1800 875 675.
Q.Do I need to re-apply for a Drought loan in order to get the two-years interest free period?
No. Your existing Drought loan is still current, only the conditions in your loan agreement will be amended, and so you will not need to prove your eligibility.
Small Business Drought loan
Q.The government has announced the RIC will deliver a Small Business Drought loan. What can you tell me about this?
The Small Business Drought loan for amounts of up to $500,000. The first two years will be no interest and no repayment, followed by three years interest-only and then five years principal and interest.
Q.Which small businesses are eligible?
Eligible small businesses are those that directly provide primary production related goods and services to farm businesses in the most drought-affected communities. The loan can be used to provide working capital required to help manage their businesses through this drought. Examples could include harvesting and fencing contractors, carriers, stock and station agents, and businesses dealing in agricultural equipment and repairs. Businesses not directly linked to the farming sector – such as the local hairdresser or cafe – would not be eligible.
Q.I can’t get a loan with the banks; will I be able to get a Small Business Drought Loan?
The guidelines for these loans are yet to be developed, however you will need to have sufficient and satisfactory security to meet our security requirements in order to be eligible. You will also need to be able to demonstrate that you are viable and able to make your repayments after your two-years interest free period has expired.