Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

Interest rates under the Microfinance Ireland Covid-19 loan schemes have been reduced to between 4.5% and 5.5%. The first six months are interest and repayment-free, which means there is an effective annual interest rate of just over 3%. Under the SBCI Covid-19 working capital scheme, loans are offered at a maximum rate of 4% and this represents a significant saving compared to other similar lending products on the market. Under the future growth loan scheme, the maximum interest rate is 4.5% for loans of less than €250,000 and 3.5% for loans more than or equal to €250,000. We are exploring measures to further reduce interest rates and I continue to look at whatever opportunities there are for lower interest rates on loans. For example, I recently secured Government approval to amend the process by which Microfinance Ireland is funded, in order that it can access cheaper funding. Once the necessary legislation is in place, it will support further lending by Microfinance Ireland at heavily subsidised interest rates. Under the new €2 billion credit guarantee scheme, interest rates will be below market rates because the State is guaranteeing 80% of those loans.

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