In a release issued recently, ScotiaBank said “This Scotia FARM Fund reinforces the Bank’s ongoing thrust to stimulate growth in the agricultural and productive sectors. Under this initiative, the bank is providing short-term, non-revolving loans to financially viable farming projects with the goal of stimulating increased farming activities, reducing the use of foreign exchange on imports of products that can be produced locally and generating increased employment.”

The fund will be available from April 29 to December 31, 2010 to eligible farmers who are registered with the Rural Agricultural Development Authority (RADA), and approved by the Ministry of Agriculture and Fisheries FARM Programme. Loans will range between $500,000 and $2 million, and will be utilised for short-term crop financing, including purchasing of fertilizer,insecticide, seeds, and securing labour directly related to the crop production.

In the first phase of the project, the bank will be providing loans for the planting of onions, irish potatoes and hot peppers. The maximum loan term for the financing of onion and potato crops is six months, and the maximum term for hot peppers is nine months. A maximum of 10 per cent of the project cost (up to $200,000) can also be used for the purchase of capital equipment specific to the project/crop planting. Loans will be disbursed against invoices for material and labour and directly to the suppliers for material.

Last week, First Caribbean International Bank Jamaica Limited (FCIBJ) began offering existing car owners a refinancing loan for cars no older than two years, as well as short-term financing for insurance and vehicle licensing of up to $450,000. The insurance and vehicle-licensing loan will be no more than these expenses cost, and must be repaid in 11 months, but is renewable at the end of the period. The facility is intended to “ease the cash flow” of recipients.

Last month, COK Cooperative Credit Union began marketing 100 per cent financing offers for cars again, a product which fell off the marketing radar earlier this year. For 2009 and 2010 cars, it is offering an interest rate of 19.95 per cent, with five years to pay. It is also offering 75 per cent financing for insurance at the same 19.75 rate.

At Scotiabank, a special rate of 19.25 per cent was on offer to October 31. Also, as Christmas approaches, ScotiaBank has reintroduced a rate of 19.75 per cent for new cars, along with cool payment terms up to 72 months or six years, a pre-approved Magna Mastercard or Gold Mastercard credit card, and creditor life-insurance coverage of up to $7.5 million.

Since September of this year, National Commercial Bank (NCB) began marketing its special 19.75 per cent rate for new and used motor vehicles, which includes “no principal payments” for up to three months.

Look out for more car loan specials and decreased rates as the Christmas season approaches.

According to the Scotiabank Group President & CEO Bruce Bowen, the reduction in the bank’s lending rate reflects its commitment to stimulating recovery in all sectors of the Jamaican economy. He also says it is critical that senior decision makers in government, business and civil society work together to build confidence in the business community and the general public, and that Scotiabank will continue to review its rates to determine if there is an opportunity for further adjustments over the short-term.