Interest only option in new farmer loans

AIB has launched a Long Term Farm Development Loan, with terms of up to 20 years at 5.125% (AIB Variable Prime rate plus 2%).

Irish farmers are likely to have more flexible farming opportunities in the future, but in a more competitive environment, according to sources in the bank.

They say significant farm investment decisions are likely and in recognition of the cash flow risks, they are offering an ‘interest only’ option for up to three years at the start of the loan.