REBATES OF INTEREST

Marlborough Express, Volume LXXVI, Issue 240, 12 October 1942, Page 4

REBATES OF INTEREST

HELP FOR RETURNED MEN. ♦ ENCOURAGEMENT TO FARMING.

P.A.

WELLINGTON, Oct. 12.

The question of assisting returnea soldiers to take up farming by State Advances loans was referred to on Saturday by the Prime Minister, Mr Fraser. He said that to encourage soldier settlers by easing their financial obligations during the transition period from Army life to civilian life, which was a period when many men might be faced with unavoidable difficulties, arrangements had been made on the recommendation of the Rehabilitation Board for the sranting of rebates of interest.

"The position is that long-icerm loans for the purchase of farms will be made by the State Advances Corporation at its ruling rate of interest, 4 1-8 per cent., except that, conditional on prompt payment of instalments and general compliance with the conditions of the loan— and these qualifications are important — a rebate will be granted to reduce the rate to 2 per cent. for ttie first year and 3 per cent. for the second and third years," said Mr Fraser. "These rebates during the first three years are in the nature of rewards for good husbandry, and it is anticipated that they will be received by the great majority of the soldier settlers. "In addition, a discretionary power has been granted to the State Advances Corporation, which is administering rehabilitation loans, ro extencl the period of rebate at 2 per cent or 3 per cent, in appropriate cases for various periods up to a maximum of seven years of rebates in all. This power is intended to be exereised in cases where, as a result of war service or on account of other special circumstances, such an arrangement is necessary. PURCHASE OF DWELLINGS.

"In the case of long-term loans for erection or purchase of houses, similar principles will apply. The normal rate of interest will be 4 1-8 per cent., but subject to payments being met a rebate down to 2 per cent. will be generally granted in the first year, and in special cases where the circumstances warrant it, necessary rebates will be allowed fn subsequent years up to a maximum of seven years in all. "Provision is made for some rebates in loans for businesses, stock and chattels, and so forth, but all such rebates are conditional on terms being fulfilled or are for assistance in overcoming particular handicaps suffered by soldiers. "The Government will deal sympathetically and generously with men who have served in the forces," con§ cluded the Prime Minister, "but steps will have to be taken under existing authority to prevent a low rate of interest arranged for the benefit of the returned men being capitalised in lahd or property values."