Loan terms

Understand how our farm business loan terms work.

Check the detail in the guidelines
Farm investment loan
Drought loan

Drawdown options

You do not have to drawdown the full loan in one go.

After your first drawdown, you can request up to 2 more drawings. This is only up to your approved loan limit.

Your loan should be fully drawn within the first 6 months.

Interest rates

We calculate interest daily on your loan balance.

Frequency of charging will depend on your business needs. It could be monthly, quarterly or 6-monthly (in arrear).

Our interest rate is based on the Australian Government 10-year bond rate. We aim to make loans available at a lower interest rate than commercial finance.

Percentage of total debt

To be eligible to apply for our loans at least 50% of your total debt must be with a commercial lender. Once the loan is established, there is no requirement to keep the exposure to commercial debt in balance with the debt with us. 

We are set up to offer support to farmers in need. We are not a lender of last resort. We want to work in partnership with commercial lenders, not compete with them.

This will help us work together for the benefit of the farmer.


There is no redraw facility.


You can make repayments anytime. Even during the 5-year interest only period.

We will structure repayments to suit your cash flow.

The longest repayment period is 15 years. At the end of the 10-year loan term, you need to refinance any remaining balance with a commercial lender.


Any reporting requirements will be detailed in your loan agreement.

This will include periodic reviews of the farm business.

It may include responding to surveys on our services. We use this to assess our performance and evaluate our contribution to Australian Government policy objectives.