State-backed Microfinance Ireland cuts interest rates by 1pc
State-controlled lending agency Microfinance Ireland (MFI) is to cut its interest rates by 1pc from the start of July.
MFI provides finance to micro-enterprises that apply for loans for anything between €2,000 and €25,000.
The not-for-profit body will now be charging an interest rate of 7.8pc in its money, down from 8.8pc.
The company said that applicants to MFI via their Local Enterprise Office can avail of money at the cheaper rate of 6.8pc.
MFI looks to fill the gap where small companies are facing difficulty in securing funding from traditional sources.
Jobs minister Mary Mitchell O'Connor welcomed the announcement this morning.
"It is very much in line with the thrust of the Government’s Action Plan for Jobs, to make loans to micro-enterprises right across the country more affordable.
"I am very much aware that micro-enterprises are at the heart of rural Ireland and I want to create an environment for them to grow and develop right across the country," the minister said.
The news follows the recent appointment of Garrett Stokes as chief executive of MFI.