Farm loans of up to €100,000 may be offered by credit unions
A number of credit unions across the country are expected to soon launch dedicated loans for farmers.
It comes after the success of four west of Ireland credit unions are having with a new agri-loan product they jointly launched at the start of the year.
Credit unions in Munster, Ulster and Leinster are now interested in offering the same loan product, known as Cultivate.
The Galway lenders have already seen a large uptake of the farmer loans, with amounts available of up to €50,000, with terms of up to seven years.
There are plans to expand the loan product to allow lending of up to €100,000.
It has an interest rate of just 6.75pc, a cost that significantly undercuts the banks.
Cultivate is an initiative of four Galway credit unions that provides short to medium-term loans designed specifically around the growing needs of farmers.
Ballinasloe, St Jarlath's, Naomh Breandáin and Gort credit unions started the initiative to appeal to the financial needs of the more than 13,000 farming households in Co Galway.