Rural Bank has announced an increase of 0.15% to its variable term lending and overdraft products, effective 5 November 2018. This decision reflects changes in funding costs experienced by all banks for a sustained period.
Rural Bank Chief Financial Officer, Will Rayner, said the Bank considered a range of factors when making pricing decisions.
“We need to balance the needs of all our customers – including both deposit and lending customers – against the need of maintaining a financially sound and sustainable business,” Mr Rayner said.
“As a specialist agricultural lender, with an in-depth understanding of the challenges and opportunities faced by Australian farmers, we do not make this decision lightly. We have absorbed the significant increase in funding costs for a period of months but have made today’s decision to partially offset the impact this is having on our business,” he said.
As a specialist agricultural lender, Rural Bank assesses individual cases of hardship on a case-by-case basis. Any customer with questions regarding their circumstances is encouraged to contact their relationship manager directly. They can also call Rural Bank’s Customer Service Team on 1300 660 115 or visit their nearest branch.