The variable interest rate for RIC (Regional Investment Corporation) farm business loans will remain on hold at 5.18 per cent from 1 February 2026 for another six months following recent confirmation from the Australian Government, providing certainty for farmers managing financial pressures ahead of 2026.
RIC Chief Executive Officer John Howard said RIC's variable interest rate has remained steady at 5.18% for the past 4 reviews since 1 August 2024.
"This latest review decision means rates will continue to be the same for two years, reinforcing the commitment to support farm businesses during financially difficult times and providing certainty of payments required to better manage cash flow," Mr Howard said.
"Last year, RIC loan customers saved an average of 2.26% in interest payments compared to their commercial bank loans. For a typical $1 million loan borrowed with RIC, this means farmers had the potential to save more than $22,000 a year-or over $400 each week - extra money to help cover their expenses during difficult times.
"It's money that is helping to buy feed or pay bills, so it is meaningful extra cash flow for farmers."
RIC's variable interest rate is reviewed biannually by the Australian Government with any interest rate changes effective from 1 February and 1 August.
Since RIC's establishment on 1 July 2018, more than 3,500 loans valued at $3.74 billion have been approved to support Australian farmers and farm-related small businesses.
RIC has $272.9 million for new loan funding remaining for the 2026 financial year with an additional $1 billion announced by the Prime Minister in new loan funding beyond 30 June 2026.
For more on RIC loans visit www.ric.gov.au/loans
