RIC farm business loans interest rates remain on hold at a low 4.52%

Regional Investment Corporation (RIC) today announced the variable interest rate on all concessional farm business loans including AgriStarter, Farm Investment, Drought, and AgBiz Drought, will remain at the low rate of 4.52% effective from 1 August 2023. The Plantation Loan will remain at 4.07%.

RIC Chief Executive Officer, John Howard said RIC concessional loans play a vital role in strengthening Australian agriculture and helping farm businesses manage their risk.

“RIC concessional interest rates remaining on hold at 4.52% will be welcome news for thousands of RIC customers across Australia, providing much-needed breathing space, greater certainty to manage cash flow, and stability to strengthen their long-term financial position,” Mr Howard said. 

“One of the key benefits of RIC loans is interest rates are reviewed every 6 months and are based on the average of the Australian Government 10-year bond rate, not Reserve Bank of Australia (RBA) cash rate movements. So now, RIC loan interest rates have proportionally become even better.”
The RBA has increased its cash rate 12 times, up by 4% since May 2022. In comparison, during the same period, RIC concessional loan rates have moved twice, with an increase of only 2.21%.

Mr Howard said, “RIC loans have saved our customers an estimated $105 million in interest repayments in FY2021-22 alone*. Our latest research shows 4 out of 5 RIC loan customers have greater confidence in the future and profitability of their farm business.**

“We are pleased to help farm businesses set up, invest, recover, and prepare for potential severe business disruption including drought, floods or bushfires for a more sustainable, thriving regional Australia,” he said.

RIC interest rates are variable and reviewed every six months, bringing certainty to RIC customers that any change will be effective on 1 February and 1 August each year. Farm businesses with a concessional RIC loan benefit from no application fees, no ongoing management fees and no extra or early repayment fees. RIC loans have a 10-year term with interest-only repayments over the first five years, followed by principal and interest repayments for the remainder of the loan term. Eligibility and assessment criteria apply.

For more information visit RIC loans.


*  Interest savings are represented by the ‘full savings’ which is the difference between interest charged by RIC and the interest charged by commercial lenders taking into account the comparison rate (Reference rate + fees and charges throughout the term of the loan).

** Source: JWS Research 2023

Media Contact:  media@ric.gov.au |  0435 168 885

About the Regional Investment Corporation 
Regional Investment Corporation (RIC) is an Australian Government-backed specialist finance provider of concessional loans for farmers and farm-related small businesses in financial need. Our loans help to accelerate start-ups, or when faced with severe business disruption, they support to recover, prepare and grow. Our vision is to build thriving regional communities. As at 30 June 2023, RIC has settled 2,921 loans valued at $3.16 billion.