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RIC loan pathway
After a RIC loan application is submitted, our Agri Lending Specialists team will assess eligibility, understand the financial situation of the business and ensure credit and lending criteria are satisfied before making a decision to approve or decline a loan. Once a loan application is approved, RIC will finalise loan documents and prepare for settlement.
Here is a step-by-step guide to the loan application pathway.
Timeframes
Loan timeframes are also influenced by market demand for RIC loans and individual circumstances of applicants such as business structure and complexity. We understand applicants for RIC loans are likely to be in financial need, so we’ll do our best to work with you and help move things along.
Scenarios
Riley and Ryan applied for a Drought Loan after two years of low rainfall. They used RIC’s document checklist and worked with their local Rural Financial Counsellor who has extensive experience completing RIC loan applications, so could advise them on exactly what they needed to prepare their application. By the time they submitted their loan application the RIC team hardly needed any additional information. Riley and Ryan also had two properties, their existing bank had security over one, and RIC took security over the other one, so no deed of priority was needed, and RIC didn’t need to coordinate security approval and settlement with their bank. Riley and Ryan’s loan was submitted and settled within a couple of months.
Joanne applied for an AgriStarter Loan as part of her family’s farm business succession planning. She was well prepared, had all her financial information lined up and had engaged with her bank and had their endorsement, so her loan application was approved within our target average of 50 days. RIC and Joanne’s existing bank then agreed to the loan security position, following which the settlement date was booked for around six weeks later due to the succession plan involving Joanne purchasing property from her parents. Overall, including the property settlement period, Joanne’s loan application took several months to complete.
Lynda and Victor applied for a Farm Investment Loan for their large cattle and cropping farm business following the cumulative financial impact from a bushfire and a flood. Their loan application was missing financial information on submission. Their family trust ownership structure was also complex which meant their accountant needed additional information before being able to finalise tax returns and financial statements and provide them to the RIC to continue with assessing their loan application. Once they were able to complete their RIC loan application for assessment it was approved. They hadn’t told their bank they were applying for a RIC loan. Their bank initially wasn’t comfortable with the proposed security arrangement so they then needed to buy out Lynda’s sister’s share of an additional security property, which required valuations, additional bank funding and transfer of ownership before they could negotiate their security position and obtain final approval from their bank to share security with RIC. Finalising the changes to security and preparation for settlement caused further delays. Their loan took around four months in total to complete.
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