NAB has lowest rates for farm loans
National Australia Bank (NAB) has the most attractive base lending rate for agribusiness. Just five financial institutions in the agribusiness loan market have dropped their lending and overdraft costs in the wake of this month's 0.25 per cent cut to the Reserve Bank of Australia's (RBA) cash lending rate, according to the National Farmers Federation (NFF).
Overall, loan rates remain mostly higher than a year ago, while overdraft rates are also still above their positions in November 2010, with the exception of accounts with Suncorp Bank and Bankwest.
The NFF's latest agribusiness loan monitor report shows the best loan available to farm borrowers is NAB's business options variable standard rate, now as low as 7.56pc after the recent 0.2pc cut.
ANZ, Suncorp and Commonwealth Bank all cut their interest rates by more than NAB, but are still at positions ranging from 8.92pc and the Commonwealth's 9.49pc – the most expensive on the NFF's rate monitor table.
Source: Stock & Land