Discounted loans aim to support farm business plans

Discounted lending is now available for farm businesses operated from the government-led National Loan Guarantee Scheme.

The NLGS is part of a package of measures to support the UK’s small and medium sized enterprises (SMEs) including agricultural businesses.

It allows Lloyds Agriculture to offer discounted lending rates for a range of purposes including the finance of land purchase and capital improvement projects, according to Policy Director Alick Jones.

Businesses with an annual turnover of up to £50 million are eligible for loans from £25,000 up to £5 million with a term of between one and 25 years.

"The scheme allows us to offer a discount of 1% against our normal term loan interest rates for the first five years on a new arrangement, and it is available to new and existing customers," he explains.

"Lloyds TSB Agriculture can offer capital repayment or interest-only loans on this scheme, including options with capital repayment holidays, subject to our normal responsible lending policies. "

"Participation in the mainstream agricultural support schemes is not expected to disqualify farmers from participation in the NLGS but State Aid considerations may have to be taken into account by the borrower in some circumstances."