Business Irish

Monday 23 January 2017

State-backed Microfinance Ireland cuts interest rates by 1pc

Published 17/06/2016 | 07:46

Minister of Jobs, Enterprise and Innovation Mary Mitchell O’Connor in her new office at Leinster House. Photo: David Conachy
Minister of Jobs, Enterprise and Innovation Mary Mitchell O’Connor in her new office at Leinster House. Photo: David Conachy

State-controlled lending agency Microfinance Ireland (MFI) is to cut its interest rates by 1pc from the start of July.

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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.

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