Loan Products
The following summary of loan products for each institution is a summary of their agriculture specific loan products. This information was found on their company website. For more details on an institution’s loan products, see the accompanying link under each summary table.In addition to the following financial institutions’ loan products; there are also other programs and debt products specific to cattle producers.
Royal Bank of Canada Products:
RoyFarm Multiple Mortgage Loan Option
| Description | Term | Interest Rate |
|---|---|---|
| Can finance: land, equipment, buildings, quota, debt restructuring, amortization of purchases over useful life. | customizable | Variable and fixed rates available. |
| Payment Frequency | Available Loan Amount | Notes |
|---|---|---|
| Monthly, quarterly, semi-annually, annually | customizable | - Eligible land, assets, debt restructure must be designated agricultural. - Application fees may apply. |
Term Operating Loan
| Description | Term | Interest Rate |
|---|---|---|
| Ideal for funding long-term assets for business growth (new/used capital assets, dent restructure. | customizable | Variable and fixed rates available. |
| Payment Frequency | Available Loan Amount | Notes |
|---|---|---|
| Monthly Payment required | - Fixed rate = $25,000 minimum - Variable rate = $5,000 minimum |
- Fixed Rate loan = eligible for 10% prepayment privilege at no charge. - Variable Rate loan = can be converted to fixed rate if interest rates rise. - Make up to 10% prepayments without penalty. |
Farm Improvement and Marketing Co-operatives Loans Act (FIMCLA)
| Description | Term | Interest Rate |
|---|---|---|
| Government program to finance farm improvements, fund processing, distribution and marketing of farm products. | 15 years for land, 10 years for other purchases |
- Prime+1% max on variable - Residential Mortgage Rate+1% max on fixed |
| Payment Frequency | Available Loan Amount | Notes |
|---|---|---|
| Flexible (monthly, quarterly, etc.) | - Up to 80% of asset cost up to $250,000 for individual farmers. - Farm owned co-op up to $3million. |
- Must be farming a farming activity on a full/part time basis. - Not a start-up loan. - Government registration fee. - asset trade-ins can be used for 20% down payment. |
Power to Operate (PTO) Fixed Rate Term Loan
| Description | Term | Interest Rate |
|---|---|---|
| For purchase of new or used farm equipment, breeding stock. | 1 to 5 years | Fixed. |
| Payment Frequency | Available Loan Amount | Notes |
|---|---|---|
| Weekly to annually | Up to $1,000,000 | - Make up to 10% prepayments without penalty. - Life insurance coverage available. |
Royal Business Operating Line
| Description | Term | Interest Rate |
|---|---|---|
| Helps to supplement day-to-day cash flow needs. | unlimited |
| Payment Frequency | Available Loan Amount | Notes |
|---|---|---|
| Monthly | $5,000 minimum | - Monthly account fee of $15. |
Visa Creditline for Small Business
| Description | Term | Interest Rate |
|---|---|---|
| Help pay for purchases and manage expenses. | unlimited | Prime + 1% to 6%. |
| Payment Frequency | Available Loan Amount | Notes |
|---|---|---|
| Monthly | Up to $50,000 | - Monthly account fee of $15. - Credit card benefit options available. |
