Farmer finance grows, SME loans scheme extended

author-avatar By
on December 15, 2021 Fact Checked
Farmer finance grows, SME loans scheme extended

NAB data shows equipment finance loans to small businesses have jumped 341% in value in the past two years.

The major bank puts this down to farmers, as agribusiness equpiment finance has grown 33% from 30 September 2019 to 30 September 2021.

Tractor finance is also up 69% over the same period, and NAB's regional and agribusiness executive, Julie Rynski, says Australian winter crop production will reach a record high of 58.4 million tonnes.

"[This is] even with flooding causing some losses and downgrades across several production regions," Ms Rynski said.

"The area planted to summer crops in 2021–22 is forecast to increase by 36% to reach 1.4 million hectares.

"Farmers are also being incentivised by the instant asset write-off scheme, which was expanded substantially in the 2020-2021 Federal Budget to $150,000, largely as a COVID-19 stimulus measure.

"In the 2021-2022 Federal Budget, the scheme was extended for one year to 30 June 2023, providing a longer window of opportunity for agribusinesses to make on-farm investments."

NAB finance for trucks and trailers is up 40% over the past two years, while construction equipment finance such as for cranes and earth movers is up 39%.

"This is reflective of the ongoing migration of many capital city residents to regional Australia, which is great news for regional communities and their local economies," Ms Rynski said.

"Overall regional net migration grew by a further +14% over the quarter to September 2021, according to data released by the Regional Australia Institute."

Largely untapped SME loan scheme gets extended

Earlier this week the Morrison Government announced it is extending the SME Recovery Loan Scheme by a further six months to June 2022.

To-date about 80,000 loans worth approximately $7.3 billion have been written under the scheme since it began in March 2020.

This is well-short of original estimates as the Government in 2020 earmarked up to $40 billion for the Scheme.

The Scheme allows small businesses with turnover less than $250 million to access loans up to $5 million over a term of up to 10 years.

However the Government in the latest round reduced the loan guarantee from 80% to 50%.


Advertisement

In the market for a personal loan? The table below features unsecured personal loans with some of the lowest interest rates on the market.

Lender
Advertised rate Comparison rate* Monthly repayment Interest TypeSecured TypeEarly Withdrawal FeeOngoing FeeApplication FeeTotal RepaymentEarly RepaymentInstant ApprovalOnline Application

FixedUnsecuredN/AMore details
APPLY ONLINE

Low Rate Personal Loan Unsecured (Excellent Credit)

  • No extra repayment or early exit fees
  • Up to $75,000 in loan amounts
  • Funding approved within 24 hours
APPLY ONLINE

Low Rate Personal Loan Unsecured (Excellent Credit)

  • No extra repayment or early exit fees
  • Up to $75,000 in loan amounts
  • Funding approved within 24 hours
VariableUnsecuredN/AN/AMore details
NO ONGOING FEES

Plenti Personal Loan (Excellent Credit Rating) (Variable)

  • No application fees
  • No ongoing fees
  • Apply online
NO ONGOING FEES

Plenti Personal Loan (Excellent Credit Rating) (Variable)

  • No application fees
  • No ongoing fees
  • Apply online
FixedUnsecuredN/AMore details
CHECK YOUR RATE IN 2 MINUTES
  • No ongoing fees
  • No application fees
  • Apply online
CHECK YOUR RATE IN 2 MINUTES
FixedUnsecuredN/AN/AMore details
NO ESTABLISHMENT, ACCOUNT OR EARLY REPAYMENT FEES

No Fee Personal Loan

  • No security required
  • Can apply online
  • Fast time to funding
NO ESTABLISHMENT, ACCOUNT OR EARLY REPAYMENT FEES

No Fee Personal Loan

  • No security required
  • Can apply online
  • Fast time to funding
FixedUnsecuredN/AMore details

Liberty Personal Loan (Very Good Credit History)

Rates based on a loan of $30,000 for a five-year loan term. *Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate, Rates correct as of January 17, 2022. View disclaimer.


Pictured: Mogul Brahman Stud manager Glen Pfeffer. Photo by Harrison Astbury

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

Latest Articles

author-avatar
Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree to the Savings Privacy Policy