Athlone Credit Union to offer new lending product for farmers

Athlone Credit Union is now offering Cultivate, a new lending product for farmers.

Cultivate is an initiative of a group of Credit Unions that provides short to medium term loan opportunities built specifically around the growing needs of farming members.

The product enables Athlone Credit Union to help its farming members to develop and future proof their business by providing quick and easy access to finance. Farmers can borrow up to €50,000 for a period of up to seven years at a variable interest rate of 6.55%, typical APR 6.75%.

The Cultivate project already encompasses some 30 credit unions and Athlone Credit Union CEO Michael Evans said “it is the right time for our local credit union to join the scheme”.

He explained that the interest in such a scheme had been clear from a number of stakeholder groups which have been facilitated by Athlone Credit Union comprising representatives of the various strands of the local agricultural sector.

Athlone Credit Union now has over 20,000 members and operates a common bond area of some 10 kilometers.

It is located in spacious new offices at Irishtown, across from the Golden Island Shopping Centre and Dunnes Stores in Athlone, and at Monksland. Mr Evans pointed out that Cultivate offers free loan protection insurance, subject to age and health restrictions, meaning that if the borrower dies the loan is cleared.

Loans are unsecured, there are a number of repayment options to suit the borrowing farmer's circumstances and interest is charged on the reducing balance of the loan. There are no penalty charges for early lump sum repayments, no hidden fees or set up costs and no transaction charges.

Crucially for farmers, the Cultivate scheme aims to dovetail the repayments with the income schedule of the individual farmer. “We try to tailor the repayments with the income of the farmer,” Mr Evans said.

In advance of introducing the Cultivate Agri lending programme, staff from Athlone Credit Union received specific training from Teagasc. The specially-trained staff, along with a new software system, would allow the credit union to input stock trends and other agricultural sector information into the loan procedure.

Analysis of the Cultivate programme to date has found that farmers commonly use the finance for the building up of stock and working capital, for farm building finance and tractor purchases.

During the first nine months of 2020, the average loan taken out by farmers who have borrowed during the pandemic from Cultivate, was just over €24k.

“From a Midlands perspective if you walk into Athlone, Tullamore, Mullingar or Ballinasloe credit unions, you will get the same product and the same level of training and service.”

A key element of the programme is the development of a relationship between the farmer and a local credit union staff member, who will be a specific point of contact and who will have built up an understanding of the farmer's business and working arrangements.

“We will give a commitment to you that when you contact us you will talk to a person and that you will talk to the same person over a period of time.”

Athlone Credit Union is now inviting farmers interested in the finance option to come to talk to them.

“We are encouraging farmers to come talk to us,” Mr Evans concluded. Visit www.athlonecreditunion.ie or contact 090 647 2497 for more details.

Have you registered yet?

The virtual annual general meeting of Athlone Credit Union takes place on Wednesday, April 28, at 7.30pm via Zoom.

Members must pre-register to gain access by visiting athlonecreditunion.ie

Members can also request a registration link by emailing agm2020@athlonecreditunion.ie. To register, members will require Member Number; Valid email address; Name; Address

“We hope our members will join us virtually on Wednesday, April 28, for our first ever virtual AGM,” Mr Evans said.