The Scottish Governmnet is halving the interest rates paid by crofters on house loans.

The scheme will be available to all crofters making regular payments under the Crofters Building Grants and Loans Scheme (CBGLS).  The small minority of individuals currently in arrears will be able to take advantage of this once their repayments are brought up to date.

The CBGLS was awarded on a part-grant, part-loan basis for building new or improving existing croft houses.  It was replaced in January 2005 by the grant-based Croft House Grants Scheme.

Some 2,200 crofters have outstanding grants and loans.  Of those, 500 (loans approved before May 1982) continue to be repaid at over 3% and 1,700 (more recent loans) at 7% interest.  The last of the approved loans is scheduled for completion in 2045.

The halving of rates on loans for croft houses is designed to ease the financial burden on crofters during today’s tough economic climate.

The option of moving from a fixed interest rate, as high as 7%, to a new variable rate of 3.5% will ease the financial burden on as many as 1,700 crofters.

Environment Minister Roseanna Cunningham says: ‘Reducing interest rates will make a difference to a great number of people living in the more remote areas and will help fuel the cautious optimism which is beginning to emerge throughout Scotland.

‘The current economic situation is difficult for all but geographical remoteness can increase overheads and make things even more of a struggle.

‘This government is doing all in its power to take action to stimulate growth, ease the burden faced by business and ensure our economy is well-positioned for recovery.

‘Swift and decisive action – such as encouraging the Scottish Environment Protection Agency to waive fees charged to business, farming, fishing, forestry and food industries – has helped sustain the rural economy and our rural communities’.

Related Posts

• Loch Striven ship layups: rolling story (217)
• Resilience Fund awards bring £2.2M to Scotland’s third sector (0)
• Loch Lomond & Trossachs National Park to have smaller Board (0)
• Crofting Reform Bill to protect against loss to holiday homes (0)
• Lismore exchange to be upgraded to facilitate better broadband access (0)

---

The Latest News from ForArgyll delivered via email, weekly or daily. You know it makes sense!

---

Comments (rss) | Respond | Ping | | Print This Post