COUNTY GALWAY, Ireland–Four credit unions here have banded together to create a product aimed at helping the 13,000 farmers in the market, most of whom raise livestock. The credit unions–Ballinasloe, Gort, Loughrea and Tuam–are offering the “Cultivate Package” with loans of up to €50,000, according to the Connacht Tribune.
Loans are being offered at an interest rate of 6.75% with a maximum repayment period of up to seven years. The “personal touch” and “face to face contact” rate very highly with the farming community in terms of their financial dealings, the publication reported.
The credit unions said farmers identified a lack of cashflow as a major annual challenge.
“Much of their income comes from direct payments at the backend of the year,” a spokesperson said. “Having access to working capital in the Spring and Summer in the form of Basic Payment Bridging finance is seen as being particularly important.”
The credit unions have also built a relationship with Mountbellew Agricultural College and believe a provision of farming loan packages for young entrants to farming as being particularly relevant, the spokesperson added.