Loan payment cycle

RIC offers a number of payment frequency options to suit your farm business and cash flow requirements.

Customers choose the payment frequency in the loan application and we may discuss the suitability during the loan assessment.

Payment types

Interest payments

Interest payment frequency options are monthly, quarterly or half yearly.
Interest is calculated daily and charged per your interest payment frequency
Interest is charged in arrears
Interest is charged on the first working day of the month of your interest payment frequency (see table below)
Your first interest charge is the next interest payment frequency cycle after first advance (see table below)

Principal repayments

Principal payment frequency options are monthly, quarterly, half yearly
Principal is charged the first working day of the month per your principal repayment frequency (see table below)
After your five-year loan anniversary, you will move from interest only payments to principal and interest (P&I). Your principal repayments will start on the first available date after this, per your nominated payment frequency cycle. Your interest payment frequency will continue unchanged. (see table below)

Residual amount

The residual amount is all unpaid principal and interest at the repayment date
After your first drawdown of funds, your interest payments will start on the first available date as per your nominated payment frequency cycle (see table below)

All charges occur on the first business day of the month.
Please ensure sufficient funds are available in your nominated bank account.
Customers can nominate to have interest and principal payments on different cycles.

No. You can only pay off interest once it has been charged to the loan.

You will need to request a variation to your loan agreement.

Let us know about any changes to your bank details so loan repayments are automatically made when you want.

Get in touch if you have a question about your loan payments and the RIC payment cycle.