THE Reserve Bank of Fiji Flood Rehabilitation Scheme may allow up to $1million worth of borrowing but this would be reviewed on a case by case basis.
In response to this, HFC yesterday announced that its Top Gear Disaster Rehabilitation Facility (HFC- TGDRF)s interest rate had been reduced to 4.5 per cent and they would also accomodate the revised RBF policy.
This facility is formulated not only with the view of RBF Flood Rehabilitation scheme, but as part of our, HFCs social responsibility as a local institution to stand out in case of emergency or economic injury, HFC deputy chairman, Dr Rohit Kishore said.
The RBF policy allows maximum interest rate of 6 per cent and we at HFC started offering 4.99 per cent, he added.
The limit on the product is $500,000 per entity however RBF has confirmed that on case by case, they would be able to increase to $1 million and even more.
HFC will accommodate that accordingly for the customers.
Dr Kishore thanked the RBF for such an initiative, which allowed institutions like HFC to borrow from the central bank at 2 per cent.
HFC has expanded the offer to individuals for home renovations and construction, replacement of white goods and other contents.
The package is also available to farmers, who have been affected by the flood. HFC said for all consumer loans, the expected turnaround time was 24 hours while for business loans it was three working days but subject to meeting all the documentary requirements and internal policy guidelines.
The purpose for which the business community can borrow funds include replacement of inventory, loss of sales, repair or replacement of plant, equipment and machinery, restoration of damaged buildings, including resorts and hotels, replacement of vehicles; and meeting existing cash flow commitments.
Since February, we have funded 13 customers totalling $1.81 million and in addition to that, there are three other customers, approved totalling $0.736million yet to be funded with formalisation of the securities, HFC general manager risk and governance, Raj Sharma said.
He said HFC had arrangements in place with RBF to borrow to a limit of $15million. HFC so far has used $7.13million, on the scheme as well as on its export and product substitute program.
In addition to this, HFC has accommodated customers on case by case basis who had cash flow constrains, following the flood.