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Market Rate Loan

Home · Market Rate Loan

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What's a Market Rate Loan?

· It's for businesses that want to have the flexibility to have multiple loans within one facility that has an overall limit starting from $500,000

· It has a transparent interest rate linked to the Bank Bill Swap Bid rate (BBSY - published daily in the newspaper)

· Choose a rollover period between 1 and 6 months. At the end of each rollover period, your interest rate will update based on the current BBSY

· Set different repayment schedules for each loan within the facility to suit your business cash flow

· Get expert advice from our Global Markets specialists to help you minimise your exposure to market interest rate fluctuations

Flexibly structure your loan

· The Market Rate Loan facility supports up to 25 participating entities

· You can allow your entities to manage their individual cash flow requirements

Customise your repayments and security

· Make interest only or principal plus interest repayments based on your business needs, and the type of investment you're making

· Loans can be fully secured, partially secured or unsecured

· Secure your loan with residential property, commercial property or other business assets

Manage interest rate risk

· Structure your loan to flexibly manage cash flow and your exposure to market rate changes

· For example, one of your loan accounts may have a 6 month reset period, while another may have a 1 month reset period

· Choose a rollover period between 1 and 6 months. At the end of each rollover period, your interest rate will update based on the current BBSY

· Choose to pay a fixed interest rate, or explore a range of Interest Rate Risk Management (IRRM) options offered by our Global Markets team

· IRRM structured solutions are available on loan accounts of $500,000 or more

Are you eligible?

Eligible businesses include:

· Medium to large sized Australian businesses and not-for-profit organisations

· You must use the loan for business purposes only

· You must meet the Bank’s lending policies and credit risk requirements

You're more likely to be approved if:

· You haven't been overdrawn or had your account in arrears anytime in the past 3 months

· You haven't been declared bankrupt in the last 5 years

· You haven't had any accounts in collections in the past 6 months

· You have a minimum 30% deposit as well as cash reserves to demonstrate that you can operate the business for at least the first 3 months

Rates & fees

How is the interest rate decided?

The Market Rate Loan sets the interest rate based on the BBSY – an Australian benchmark interest rate which is published daily on Thomson Reuters and on Bloomberg LLP.

About your rates and fees

Rates and fees differ based on the type of security you provide for your loan, your loan amount and other factors. We'll confirm what they are in your Letter of Offer.

Next Steps

Applicable fees vary, e.g. IRRM charges – please speak with your Relationship Manager for rates and terms to suit your needs.