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Co-op announces further lending rate cuts

The Co-operative Central Bank (CCB) announced further lending rate reductions starting on March 1, expected to benefit some 132,000 borrowers.

The CCB said it was cutting its housing loan rates by 1.0 per cent – with a 2.75 per cent minimum.

Business loans will see a 2.0 per cent reduction — 3.0 per cent minimum — and consumer loans will be cut by 1.0 per cent — 4.0 per cent minimum.

Student loans will be reduced to 4.0 per cent from 4.5 per cent, and farming loans to 4.25 per cent from 4.75 per cent.

Combined with recent cuts, the co-op banks’ average rate for each type of loan was as follows: housing loans 3.51 per cent, business, 4.25 per cent, consumer, 5.37 per cent.

The reductions cover all existing serviced loans and will come into force on Sunday.

They will benefit 132,000 borrowers with loans worth €5.7 billion.

According to the CCB, non-performing loans will be subject to a 0.5 per cent interest rate decrease as soon as they are restructured and a further 0.5 per cent once the terms were met for six months.

Earlier this month, the CCB announced a 1.0 per cent reduction in housing loan rates.

It has also cut its farming loan rates by 2.0 per cent effective January 1 and student loans back in November 2014.

 

 

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