Banks to charge as little as 0.8% on govt-backed business loans

Tue, 21 Apr 2020

At least some of the major banks will be charging very low interest rates, one as little as 0.8 percent, in lending under the $6.25 billion government finance guarantee scheme, and considerably lower rates than they charge on residential mortgages.ANZ Bank, the nation's largest, told BusinessDesk it doesn't expect to make any money on the BFGS, "even with the government guaranteeing 80 percent of any losses."The bank will charge a flat 2.5 percent to all customers borrowing under the scheme and ANZ will waive application, mont...

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