FINANCIAL AID FOR RETURNED SOLDIERS

Southland Times, Issue 24872, 12 October 1942, Page 4

FINANCIAL AID FOR RETURNED SOLDIERS

LOW INTEREST RATES ON LOANS WELLINGTON, . October 11. To encourage soldiers to take up farming by easing their financial obligations during the transition period from the Army to civilian life, arrangements have been made, on the recommendation of the Rehabilitation Board, for granting rebates of interest on State Advances loans, said the Prime Minister (the Rt. Hon. P. Fraser) today. Long term loans for the purchase of farms are to be made by the State Advances Corporation at the ruling interest rate of 4J pex- cent, except that conditional upon prompt payment of instalments and general compliance with the conditions of loans a rebate may be granted to reduce the rate to 2 per cent, for the first year and 3 per cent, for the second and third years. These rebates are in the nature of rewards for good husbandry. Discretionary powers have also been granted the State Advances Corporation to extend 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. This will apply as a result or war service or on account of other special circumstances. In the case of long term loans for the erection or purchase of houses similar principles will apply. The normal interest rate will be 4| per cent., but subject to the payments being met a rebate down to 2 per cent, will be generally granted in the first year and in special cases where necessary the rate of rebates will be allowed in subsequent years up to a maximum of seven years. Provision has also been made for some rebates in loans for businesses, stock, chattels etc., subject to the terms being fulfilled or for assistance in overcoming particular handicaps suffered by soldiers. Mr Fraser said the Government would deal sympathetically and generously with men who served in the forces, but steps would have to be taken to prevent the low rate of interest arranged for the benefit of returned men being capitalized in land or property values.