Lender announces interest rate reduction for small businesses

Business, Finance | Fri 17 Jun | Author – Business & Finance
arrows down

Government-funded not-for-profit lender Microfinance Ireland will reduce its lending rate by 1% for all new lending from July 1st 2016.

Microfinance Ireland, in partnership with the network of Local Enterprise Offices, has also launched a support programme to offer expert mentoring assistance to Microfinance Ireland-approved loan applicants.

This mentoring will be provided through Local Enterprises Offices who work hand-in-hand with Microfinance Ireland and support micro-enterprises at local level across the country.

Micro-enterprises can apply for loans of between €2,000 and €25,000 through their Local Enterprise Office, or directly to Microfinance Ireland.

From July 1st, applicants seeking loan finance from Microfinance Ireland through their Local Enterprise Office can borrow at 6.8% APR.

The standard fixed rate of 7.8% APR will be applicable to businesses which apply directly to Microfinance Ireland and also reflects a reduction of 1% in the standard rate

Garrett Stokes, newly appointed chief executive of Microfinance Ireland, said: “The interest rate cut and mentoring support will mean our business loans are now even more affordable. Since Microfinance Ireland was set up in 2012, we have approved €14.1m in loans to 944 businesses supporting 2,148 jobs. We’re happy to support all types of micro- businesses, helping to spread the economic recovery right across the country.”

Niall O’Donnellan, head of Entrepreneurship in Enterprise Ireland, commented: “I am delighted that mentoring services are now available for Microfinance Ireland clients through Local Enterprise Offices. This is a valuable support for micro-enterprises ensuring they can reach their potential.”

Image: FutUndBeidl