Farmers the first to benefit from big bank smackdown
THE Commonwealth Bank has moved to introduce a key recommendation from the Hayne royal commission and will no longer charge drought-stricken farmers “default interest”.
The Financial Services Royal Commissioner Justice Kenneth Hayne (pictured) slammed the banks for charging farmers high default interest for loans in times of drought or other natural disasters — when there was little prospect the money would be recouped.
Today, the Commonwealth Bank will announce it will remove default interest charges from agricultural loans when the business is affected by drought or other natural disasters. The changes were among a raft of lending measure Commonwealth Bank says will help small business — including same-day approvals for loans of up to $250,000 for existing customers and beefing up its teams that support small businesses under financial strain.