Exporters Big Winners With New 4.75%P.A. Lending Rate Offer
Changes announced today to ASB’s Job Creation Loans will bring greater flexibility for businesses. The expanded loan options will be particularly attractive for exporters feeling the pinch in the current challenging market conditions, and to those businesses requiring revolving credit facilities.
Launched in February, this $1 billion loan fund offers businesses access to funds at below market rates provided they can demonstrate the loans will create new employment, or prevent people losing their jobs.
“In the six months since launch, these loans have helped to create hundreds of new jobs, but we want it to have an even bigger impact on New Zealand so we looked for ways to improve the terms of the fund to benefit businesses,” says James Mitchell, Chief Executive, Relationship Banking.
Key changes include:
- New floating rate and flexible finance facilities
- Options for foreign currency funding
- $250 million of the $1billion loan fund specifically reserved for exporters
- Refinancing of existing debt for exporters
“Exporters play a lead role in the recovery of our economy, and these low interest loans can offer some relief against a high New Zealand dollar. Setting aside $250 million of the loan fund for exporters is one way we can support their businesses during these difficult times.”
The current interest rates for the Job Creation Loans are 5.75% per annum (fixed rate), and 4.75% per annum (floating rate). These discounted Job Creation Loan rates will apply for two years and the floating rate will remain at 1% below ASB’s variable housing rate for that time. Minimum loan amount is $100,000, with a maximum of $10million per customer.
To be eligible for a Job Creation Loan, borrowers will need to meet ASB's normal business lending criteria plus demonstrate the employment benefits of their proposal. For businesses needing to move their full banking relationship to ASB to qualify for these loans, refinancing options will be discussed.
ASB encourages existing and new customers to contact either a job creation loan specialist on 0800 338 272, or their ASB Relationship Manager to find out more about the changes to the fund.
* All rates are subject to change. An early repayment adjustment may apply in the event of prepayment.