Australian Government specialist lender, RIC (Regional Investment Corporation) today announced the variable interest rate on all RIC loans will increase from 5.18% to 5.71% effective from 1 August 2026 – the first RIC loan rate increase in two years.
RIC Chief Executive Officer John Howard said RIC’s concessional loans continue to help eligible farmers and farm-related small businesses improve cash flow, recover from disruption, manage financial pressure and strengthen their long-term viability and productivity.
“While any interest rate increase can add pressure for customers, RIC loans continue to provide access to concessional finance for eligible businesses in financial need, offering an average interest rate about 2% lower than comparable commercial lending rates. This represents an annual saving of $20,000 on the average RIC loan of $1 million,” Mr Howard said.
Mr Howard said RIC’s variable interest rate is reviewed twice a year, providing certainty for customers when planning cash flow and financial forecasts.
“One of the key benefits of RIC loans is that the interest rate is reviewed every six months, with any changes taking effect on 1 February and 1 August each year. This means customers know when rate changes may occur, helping them to make informed decisions and manage repayments with greater certainty,” he said.
RIC approved more than $138 million in concessional loans in FY2026 to support farm businesses affected by drought, floods, bushfires, biosecurity events and other significant challenges.
“RIC exists to keep viable farmers farming and support regional communities. RIC Agri Lending Specialists are available to help customers understand whether a RIC loan may be suitable for their individual situation,” said Mr Howard.
“I encourage farmers and farm-related businesses considering a RIC loan to visit the RIC website to learn more about eligibility criteria for the various loans available or reach out to our RIC team.
“It is also important to talk to their commercial lender early to let them know they are seeking to apply for a RIC loan as it is likely security arrangements will need to be agreed. Trusted advisers such as Rural Financial Counsellors, accountants and agribusiness advisers can also provide support to applicants,” he said.
RIC loans have no application fees, no ongoing management fees, and no penalty fees for extra or early repayment.
For more information about RIC loans, visit www.ric.gov.au/loans
Ends
Media Contact: E media@ric.gov.au | M 0435 168 885
About RIC
RIC (Regional Investment Corporation) is an Australian Government farm business lender providing low-interest loans for farmers and farm-related small businesses in financial need to strengthen Australian agriculture. RIC loans can be used for management, recovery and future proofing following severe business disruption due to drought, natural disasters, biosecurity issues or other significant market events. RIC loans can also help farm businesses to establish farm businesses for first generation farmers or succession planning for next generation farmers. RIC’s vision is to build thriving regional communities.
Since 1 July 2018 RIC has approved more than 3,600 loans valued at more than $3.80 billion as at 30 June 2026